Ray Youssef, the former CEO of peer-to-peer exchange Paxful and current CEO of Noones, a peer-to-peer crypto marketplace and messenger, has publicly criticized the negative impact of Bitcoin's high transaction fees on adoption in emerging markets. In a series of social media posts, Youssef declared that the current fee market has driven users in the Global South away from Bitcoin toward alternatives such as Tether's USDT on the Tron blockchain.
‘We Have Failed the Global South’
Youssef stated bluntly: “We have failed the global south.” He highlighted a specific case where a user attempted to send $1 onchain only to find the fee was $55. Another Bitcoin user complained of paying $33 in fees to send just $33. These exorbitant costs, Youssef argued, make small-value transactions impractical for the majority of people in developing regions.
He noted that the promise of Bitcoin as a store of value and medium of exchange is being replaced by USDT on Tron. “70% of the world’s population growth shall come from there and they already have 80% of the world’s population. So who exactly is bitcoin serving as a store of value,” he questioned.
Runes and the Fee Spike After Halving
The recent Bitcoin halving, followed by the launch of the Runes protocol, pushed transaction fees to historic highs exceeding $200. This spike severely affected the feasibility of small payments, undermining Bitcoin's original ethos as “freedom money for the 100%.” Youssef shared a conversation with another bitcoiner who had to spend $33 in fees to transmit $33, calling such scenarios unacceptable for the Global South.
Although fees have since decreased, the damage to user confidence may linger. Youssef's criticism reflects a broader debate within the crypto community about Bitcoin's scalability and its ability to serve as a practical tool for financial inclusion.
Implications for Bitcoin Adoption
Youssef's remarks underscore a growing concern that Bitcoin's high onchain fees are pushing users toward centralized stablecoin alternatives on competing blockchains. In regions where every dollar counts, the cost of transacting Bitcoin has become prohibitive. The former Paxful CEO urges the community to realign with Bitcoin’s original mission of providing permissionless, low-cost value transfer for all, not just the wealthy.
What do you think about the current fees for Bitcoin transactions? Do you think it affects adoption in the Global South? Tell us in the comments section below.