Cash-based crypto can enable financial inclusion for billions

Opinion

The encryption companies have spent years in paying digital portfolios and applying applications, convinced that they will bring a financial list to the world. Here is the reality: 1.4 billion people are still not accompanied, and the encryption dependence exceeded 8 %. Despite all the talk about decentralization and access, the industry continues to overlook billions of people who depend on criticism for their daily lives.

In the developing economies in Africa, South Asia and Latin America, criticism is not only dominant – it is necessary. Banking services scattered, hacking smartphones are low, and digital literacy is still an obstacle. Expecting that these population is on board through a process designed for users who have a cunning technology who has access to the Internet.

However, whenever encryption solutions are tested in non -communication mode, adoption jumps. The message is clear: People are ready to use encryption, but they need a way to reach it that suit their reality.

The global reality of cash accreditation

Despite the assumptions that digital financing will eventually replace cash, this is not what the numbers show. Take Romania. It is worth noting that 76 % of the transactions are still based on cash, but the dependency dependence has reached 14 %. In Morocco, the money is still king despite the growth of digital payment, but 16 % of the population has found a way to use encryption – although it is officially banned.

Then there is Egypt, where approximately 72 % of the payments depend on cash, but the adoption of encryption sits by about 3 %, due primarily to the limited digital infrastructure. Even in India, where the encryption enthusiasm rises, 63 % of transactions are still cash.

Through these markets, the pattern is clear: people want to use encryption, but the industry does not give them a practical way to merge them into their daily transactions.

The real Crypto problem

The barriers that prevent the dependence of encryption go beyond technology. Government regulations, economic conditions and local financial customs play a role.

The biggest defect in Crypto is not a decrease in demand. It is the assumption that digital portfolios and banking applications are the only viable entrance points. This thinking ignores billions of people who are still working in the economies driven by money.

A more practical approach

Instead of forcing a digital model only on the heavy monetary areas, Crypto should adapt. Blockchain’s physical banknotes, QR coded vouchers and transfers based on SMS messages, can bring to real economy in a logical way for people who are already using criticism.

recently: Stop making the encryption complex

The idea is not as radical. M-PESA in Africa, which has more than 66.2 million active users, works on a simple-based model that allows people to exchange money for digital value without the need for a bank account. The same approach can work with Crypto, enabling users to trade cash notes associated with Blockchain in local sellers.

It really happens in small pockets. Machankura, for example, allows Bitcoin transactions via basic mobile networks, attract more than 13600 users in Africa. In an area where almost all digital payments depend on simple mobile phone codes instead of smart phone applications, such solutions are more viable than paying another process on board.

Security concerns will always reach material assets, but trained factors and appropriate control can reduce risks. More importantly, this is a solution that can be solved – with the exception of billions of people from the financial system is not.

Digital fundamentalists make mistakes

Many in the encryption space reject paper solutions as outdated. The idea that everything should be digital ignores how financial systems develop. People need time to move and systems that fit their current way of life.

Cointext, a SMS transmission service, spread to 50 countries before closing it-not because the idea did not succeed, but because the industry was not ready to support it.

The same strict thinking that refused to transfer SMS now prevents adopting in heavy monetary economies. A new service called Text BSV has appeared, enabling a counterpart to Smoshis from Satoshis via SMS-do not require any downloads, records or prior knowledge of Bitcoin (BTC). It works on any phone, and even non -narrow phones.

If the coding dependence remains 8 % suspended, it will not be because people do not want it. This will be because the industry insisted on a approach that does not work in most of the world.

An opportunity worth 50 billion dollars

The financial trend of inclusion of encryption into monetary economies is enormous. Similar markets can follow whether Romania, with 76 % monetary dependence, can reach 14 % dependence. This translates into an opportunity of $ 50 billion in the world, as encryption is in economies in which the trillion dollars move in informal cash transactions every year.

A network of Cash-To-Crypto can achieve $ 10 billion of revenue by 2030, reflecting the success of mobile money platforms such as M-PESA. Even encryption exchanges will benefit from taking advantage of these disadvantaged markets, and filling the gap between digital and monetary economies.

Organizers in paper -based encryption may hesitate due to transparency fears, but it is difficult to ignore financial inclusion in this scale. If governments see a potential amount of $ 50 billion in a new economic activity, they are more likely to work on solutions instead of preventing progress.

Criticism meets encryption

Crypto was supposed to revolutionize financial access, but it is still far from the reach of billions of people. The expectation that these societies will completely abandon criticism and jump directly to digital portfolios is unrealistic and a bad strategy

The solution does not wait for these economies to be updated. It is the interview of people where they are. This means trying the compatible solutions with money, partnership with communications providers, and models based on the agent that allows people to use encryption in a familiar way.

The current adoption booth will always become if the industry does not make these changes. Instead of a step back, paper -based encryption can be a bridge that connects billions of people with the future of financing.

Opinion: Alexander Gosv, founder and CEO of TeCtum.

This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.