The digital asset economy continues to gain momentum globally, despite recent scandals and crashes. This is fueling the demand to use cryptocurrencies as a means of payment in the real world. Big companies like Meta (Facebook) and Amazon have responded by starting to build the infrastructure needed to handle cryptocurrency payments.
Another driving force is the “24/7” nature of online marketplaces, which is also contributing to the influx of DeFi companies offering crypto-to-fiat gateways. The goal is to enable cryptocurrency investors around the world to make their digital assets vital in their daily lives.
Based on the blockchain, they can 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 lack of intermediaries in the process.
The movement of monetary value between what are essentially two financial systems with different rules is a frictional transaction. As cryptocurrency exchanges have grown, improved, and become easier to use, the rise in power is now relatively regular, offering opportunities to earn cryptocurrencies for work, accept payments in cryptocurrencies, and through reward programs such as airdrops.
For online businesses that accept cryptocurrencies as a form of payment, the startup process is relatively easy to manage. Dropping out can be more difficult, as there are parts of the world where cryptocurrencies are neither recognized nor accepted, which means using cryptocurrencies in the real world can be time-consuming and difficult to navigate.
Cashing in cryptocurrencies remains a challenge, as centralized exchanges leave their users the ability to find an exchange that allows them to switch to their preferred currency. Another limitation is that these exchanges sometimes take days to complete the transaction and impose limits on withdrawals.
This is relevant because as long as downsizing remains an issue, mass adoption of cryptocurrencies will face obstacles. In fact, for many, simply holding onto cryptocurrency savings is not a viable option. What we need more than ever is a mechanism that allows users to easily get on and off the “crypto highway”.
Companies working to make the exit ramp easier
A company that tackles problems head-on with its promise to offer “a secure, efficient and unique ecosystem in the world of decentralized finance, allowing you to send the 1: 1 value of your blockchain holdings in fiat format anywhere in the world. the world! “is SafeGram Inc..
SafeGram Send Money Services (SSMS) allows users to send cryptocurrencies to fiat from anywhere in the world via their DApp. Satisfied with a simple request to their C2F bridge, cryptocurrencies are quickly converted to fiat and transferred securely around the world.
Another is Fiat24a Swiss fintech that works closely with national financial regulators to offer a crypto-fiat gateway in a decentralized application that bridges the gap between centralized and decentralized ecosystems.
They built the platform on Ethereum’s Layer 2 arbitrage due to its low transaction costs and efficiency. However, they have decided to implement the platform on other blockchains such as Ethereum, BSC and Avalanche to encompass various ecosystems.
Fiat24 relies on smart contracts to execute transactions, minimizing human intervention and enabling instant payments on the blockchain. Allow customers to top up their account with their digital wallet, connected to Fiat24 with their native NFT, and then transfer funds to their bank.
DeFi made practical
The global financial system we currently rely on has its failures and shortcomings, many of which are starting to be addressed and redesigned with the advent of blockchain technology. The latter can effectively address issues of efficiency, reliability, cost-effectiveness and transparency, with traditional blockchains providing the kind of interoperability and scalability that the banking sector lacks.
As technology pushes us towards a future where financial services are made more accessible around the world, the importance of crypto-fiat solutions cannot be underestimated.
Somewhere in between these two radically different financial ecosystems, those investing in facilitating user access to decentralized finance are the actors to watch.