Despite recent scandals and market disasters, the global economic system based on digital assets continues to gain momentum. It is increasing the demand for using cryptocurrency as a payment option in the real world. Major corporations such as Facebook and Amazon have begun to create the infrastructure required to manage crypto currencies.
The “24/7” nature of online marketplaces also contributes to the influx of DeFi companies offering crypto-to-fiat gateways. The purpose is to enable crypto purchasers globally to use their digital assets in their daily lives.
Using the blockchain, they may conduct crypto transactions even on weekends and holidays, when banks are traditionally closed, and offer lower transaction costs for businesses and consumers due to the absence of intermediaries.
Off-ramp difficulties
The movement of financial value across what are essentially two monetary systems with distinct rules is a transaction that encounters friction. As crypto exchanges have expanded, improved, and become more user-friendly, on-ramping has become more frictionless, offering opportunities to earn crypto for labor, accept crypto payments, and through reward schemes such as airdrops.
For online businesses that accept cryptocurrency as a form of payment, the onboarding process is rather basic. Off-ramping may be more difficult, as there are regions of the world where cryptocurrencies are not acknowledged nor accepted, thus putting crypto to use in the real world will be time-consuming and difficult to traverse.
Customers of centralized exchanges are tasked with locating a decentralized exchange that facilitates off-ramping to the currency of their choosing in order to cash out their cryptocurrency holdings. In addition, these exchanges typically require days to complete transactions and impose withdrawal limits.
As long as off-ramping remains a problem, the widespread adoption of cryptocurrencies will encounter barriers. This is due to the fact that, for many, holding crypto money is not a practical option. What is required now more than ever is a mechanism that allows users to easily enter and exit the “crypto superhighway.”
Businesses attempting to make exit ramps less cumbersome
One company addressing the issues head-on with their claim to provide “a safe, efficient, and unique ecosystem on the planet of decentralized finance, allowing you to send 1:1 value of your blockchain holdings in fiat format to anywhere in the world!” is SafeGram Inc. a corporation?
SafeGram Ship Cash Services (SSMS) is a decentralized application (DApp) that enables the transfer of crypto to fiat from any location. By submitting a simple request to their C2F Bridge, cryptocurrencies are quickly converted into cash and sent globally in a secure manner.
Fiat24 is a Swiss fintech that collaborates closely with national financial regulators to provide a crypto-to-fiat gateway in a decentralized software that bridges the gap between centralized and decentralized ecosystems.
They built the network on Ethereum’s layer 2 Arbitrum because of its low transaction costs and efficiency. To support diverse eco-systems, they plan to implement the platform on other blockchains, such as Ethereum, BSC, and Avalanche.
Fiat24 relies on smart contracts to perform transactions, minimizing human interaction and enabling blockchain-based immediate funds. Permitting customers to fund their Fiat24 account with their local NFT-connected digital wallets, and subsequently transfer monies to their bank account.
DeFi made handy
The global monetary system on which we currently rely has flaws and deficiencies, many of which are beginning to be fixed and redesigned with the advent of blockchain technology. The latter can effectively address issues related to efficiency, dependability, profitability, and transparency, with mainstream blockchains offering the interoperability and scalability lacking in the banking industry.
As technology accelerates us toward a future in which financial services are made more accessible worldwide, the significance of crypto-to-fiat choices cannot be overstated.
Players to watch are those who are investing in making it simple for users to access decentralized finance, which exists somewhere between these two very different financial ecosystems.
Karen Shidlo of Fiat24 submits a visitor comment
Fiat24 offers Swiss banking in the Metaverse, with our distinctive NFT identifying your account. We are the first core banking system built entirely on blockchain and fueled by smart contracts, offering clients multi-currency money accounts that can be topped-up by friends, via a bank transfer, and a crypto-to-fiat top-up. As Swiss Fintech License holders, we are also pleased to be a part of the Swiss Fintech Association and the CV Labs Top 50 Report.
