America holds $2.37 trillion in paper currency, yet most of this vast sum remains locked out of the cryptocurrency market. Neil Bergquist, CEO of Seattle-based exchange Coinme, has identified this disconnect as one of the largest untapped opportunities in digital finance. “There’s over $2 trillion of US paper currency in circulation, and we want to enable that to go into digital currency, and you can’t do that unless you have a cash on-ramp,” Bergquist explained during a recent interview.
The scale of this market gap becomes clear when examining how Americans actually pay for goods and services. Despite predictions of a cashless society, Federal Reserve data shows that 83% of US consumers used cash at least once in the past 30 days. Cash transactions account for 16% of all US payments, according to the Federal Reserve’s 2024 Diary of Consumer Payment Choice. Meanwhile, cryptocurrency adoption has reached 28% of Americans, creating a significant population that uses both cash and digital assets but lacks convenient ways to move between them.
Cash Defies Digital Payment Predictions
The persistence of cash transactions contradicts years of forecasts about digital payment dominance. Federal Reserve research reveals that consumers made an average of seven cash payments in 2023, a figure that has remained stable since 2021. The demographic breakdown shows generational differences: consumers aged 55 and older use cash for 22% of their payments, while those under 55 use cash for 12% of transactions.
Cash usage varies significantly by transaction size and context. Nearly half of all purchases under $10 are made with cash, according to Federal Reserve data. More than 90% of consumers intend to continue using cash either as a payment method or store of value in the future, suggesting this market will persist despite digital alternatives.
The total amount of physical currency in circulation has grown consistently, reaching $2.37 trillion by January 2025. This represents a massive increase from $240 billion in 1989, demonstrating that cash usage has not declined alongside the rise of digital payments.
Financial Freedom, Not Financial Exclusion
Bergquist’s analysis challenges common assumptions about who uses cash and why. “That market that likes to use physical paper currency is similar to the market that appreciates having financial freedom. They want to own their cash literally in their hands or in their pocket,” he observed. This insight suggests cash usage extends well beyond the traditionally underbanked population.
Federal Reserve data supports this perspective. While 4.2% of US households remain unbanked, representing 5.6 million households, the cash-using population is substantially larger. The gap between these figures indicates that many banked Americans choose cash for specific transactions or as a matter of preference rather than necessity.
International examples illustrate cash’s continued relevance even in technologically advanced societies. Bergquist noted that “even places like Japan, cash is still very alive and well. You can’t take a taxi without having physical cash in a lot of situations in Japan.” This observation highlights how cash remains essential for certain transactions regardless of a country’s digital infrastructure.
Consumer motivations for cash usage often center on privacy and financial autonomy rather than lack of access to banking services. Research shows that 73% of all cash payments were made by consumers who prefer credit cards, indicating cash serves as a backup payment method rather than a primary choice driven by exclusion.
When Digital Money Meets Physical Currency
The cryptocurrency market has expanded significantly, with global adoption growing 13% in 2024 to reach 659 million owners worldwide. Bitcoin ownership alone reached 337 million people, representing 51.2% of all global crypto holders. However, most cryptocurrency exchanges require bank accounts or payment cards, effectively excluding the substantial population that prefers cash transactions.
Bitcoin ATM infrastructure has grown to address this gap, with 38,768 machines operating globally as of January 2025, representing a 6% increase from the previous year. The United States hosts 81.27% of these machines, though growth has slowed in recent months despite cryptocurrency reaching record prices.
Traditional cryptocurrency adoption methods have focused on digital-native users with bank accounts and credit cards. Bergquist argues this approach misses a significant market segment: “We’ve also learned that about 20% of all payments in the United States are still done in cash. So there actually is a large market that still prefers to use physical paper currency.”
The challenge becomes more pronounced when considering global markets. “If you leave the United States and go to places like Latin America, the reality is the vast majority of all payments are done in cash,” Bergquist noted. “If you want to onboard the next 2 billion users into crypto, you’re going to need to accept cash.”
Building Bridges Between Cash and Crypto
Coinme has developed infrastructure to connect cash users with cryptocurrency markets through partnerships with existing retail networks. The company operates services at over 40,000 locations across the United States, primarily through integrations with Coinstar kiosks and MoneyGram outlets. Rather than deploying standalone ATMs, this approach leverages existing consumer touchpoints.
The technical integration allows users to convert cash to cryptocurrency at familiar retail locations. Coinme’s platform handles compliance requirements across 48 state jurisdictions, each with different regulatory frameworks for cryptocurrency transactions. This regulatory complexity represents a significant barrier for companies attempting to serve cash-based crypto users.
Recent data shows the potential impact of improved cash-to-crypto infrastructure. Consumers hold more cash than before 2020, with store-of-value holdings up 53% and cash carried as backup payment instruments up 23%, according to Federal Reserve research. This suggests Americans are holding more cash precisely when cryptocurrency adoption is accelerating.
Market Implications for Digital Finance
The intersection of persistent cash usage and growing cryptocurrency adoption creates opportunities for financial service providers willing to bridge both worlds. Current market dynamics show cryptocurrency ownership concentrated among younger, higher-income demographics, while cash usage remains strong across broader population segments.
Federal Reserve data indicates that unbanked adults are twice as likely to use cryptocurrency for financial transactions compared to banked adults, though overall usage remains low at 4% versus 2% respectively. This suggests cryptocurrency appeals to populations seeking alternatives to traditional banking, many of whom also rely on cash.
The regulatory environment has become more supportive of cryptocurrency infrastructure, potentially enabling broader cash-to-crypto services. As Bergquist observed, “It’s building season” for cryptocurrency innovation following clearer federal guidance on digital asset regulations.
The $2.37 trillion in circulating cash represents more than just an untapped market; it reflects fundamental consumer preferences for financial autonomy and privacy that align with cryptocurrency’s value propositions. Companies that successfully connect these preferences with digital asset access may unlock substantial growth opportunities while serving populations historically excluded from cryptocurrency markets.
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