Obviously, avoiding regulatory bullying would be paramount and that might be possible by using bitcoin. Just off the top of my head, I can picture a PayPal-ish website that money changers could use. (Money changers are everywhere!) They could open an account on the website to monitor, track, and verify transfers and payout cash to the receiver. And just like PayPal, if there were issues like fraud or laundering, the money changer would be accountable.
This idea is so obvious, I wonder if it's already being done.