How to Withdraw Money – The Rise of Crypto-Fiat

The digital asset economy continues to gain momentum globally, despite recent scandals and crashes. This is fueling the demand for using crypto as a means of payment in the real world. Major companies such as Meta (Facebook) and Amazon have responded by starting to build the infrastructure needed to handle crypto payments.

Another driving force is the “24/7” nature of online marketplaces, which is also contributing to the influx of DeFi firms offering crypto to fiat gateways. The goal is to enable crypto investors around the world to make their digital assets viable in their everyday lives.

Relying on the blockchain, they can perform crypto transactions even on weekends and holidays when banks are traditionally closed, offering lower transaction costs for businesses and consumers due to the lack of intermediaries in the process.

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Off-Ramp Challenges

The movement of money value between what are essentially two financial systems with different rules is a transaction fraught with friction. As crypto exchanges have grown, improved and become more user-friendly, the rise in power is now relatively smooth, providing opportunities to earn crypto for work, accept crypto payments, and through rewards programs such as airdrops.

For online businesses that accept cryptocurrencies as a means of payment, the launch process is relatively easy to manage. Dropping out can be more difficult, as there are parts of the world where cryptocurrencies are not recognized or accepted, meaning using crypto in the real world can be time consuming and difficult to navigate.

Cashing out crypto remains a challenge as centralized exchanges leave it up to their users to find an exchange that allows them to switch to their currency of choice. 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 scaling remains an issue, mass adoption of cryptocurrencies will encounter hurdles. For many, simply sticking to crypto savings is not a viable option. What we need more than ever is a mechanism that allows users to get on and off the “crypto highway” with ease.

Companies that make the exit smoother

A company that tackles issues head-on with its promise to “provide a secure, efficient and unique ecosystem in the world of decentralized finance, allowing you to transmit the 1:1 value of your blockchain asset in fiat format anywhere in the world. !” is SafeGram Inc..

SafeGram Send Money Services (SSMS) allows users to send crypto to fiat through their DApp anywhere in the world. Fulfilled via a simple request to their C2F bridge, cryptocurrencies are quickly converted to fiat and transferred securely around the world.

Another is Fiat24a Swiss fintech working 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 for its low transaction costs and efficiency. However, they decided to deploy the platform on other blockchains such as Ethereum, BSC, and Avalanche to encompass different ecosystems.

Fiat24 relies on smart contracts to execute transactions, minimize human intervention and enable instant payments on the blockchain. Let customers top up their account with their digital wallet, connected to Fiat24 with their own NFT, then transfer money to their bank.

DeFi made practical

The global financial system we currently rely on has its flaws and shortcomings, many of which are being 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 lacking in banking.

As technology propels us into a future where financial services around the world are made more accessible, the importance of crypto-fiat solutions cannot be underestimated.

Somewhere between these two radically different financial ecosystems, those investing in facilitating users’ access to decentralized finance are the players to watch.

Guest post by Karen Shidlo of Fiat24

Fiat24 offers Swiss banking services in the Metaverse, where our NFT signature identifies your account with us. We are the first core banking system built entirely on blockchain and powered by smart contracts, providing customers with multi-currency cash accounts that can be topped up by peers, via wire transfer and crypto-fiat top-up. As Swiss Fintech licensees, we are also proud to be a member of the Swiss Fintech Association and listed in the CV Labs Top 50 report.

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