Fiat Payment Rails and Neobanking Services Driving Mainstream Crypto Adoption, Say Industry Figures
According to industry experts in the traditional finance and Web3 sectors, fiat payment rails and neobanking services are playing a crucial role in the mainstream adoption of cryptocurrencies.
Iana Dimitrova, CEO of OpenPayd, highlighted that their company processes over €3 billion in monthly transactions and has issued more than 2 million accounts, including prominent cryptocurrency exchanges like Crypto.com. OpenPayd provides banking and payments infrastructure for various industries, including the crypto space.
Dimitrova noted that there is a growing level of mistrust from regulators and traditional holders of payment rails towards the crypto world. She emphasized that fiat on-ramps and payment rails can address concerns about identity, traceability, and money laundering, which are perceptions held by traditional financial institutions and regulators.
Fiat On/Off-Ramps for “Higher Risk Category Clients”
Damex, a Gibraltar-based firm specializing in providing fiat on and off-ramps for “higher risk category clients” such as iGaming, Forex, family offices, and hedge funds, was discussed by Samuel Rondot, the managing director of Damex. The company facilitates large cryptocurrency-to-fiat conversions in euros, pounds sterling, and U.S. dollars.
Rondot explained that Damex’s clients frequently face reputational issues with their bank accounts due to their involvement in the cryptocurrency ecosystem. He suggested that banks’ resistance to crypto stems from a misunderstanding of the technology and its principles.
Hot Take: Fiat Payment Rails as a Bridge to Crypto Acceptance
Fiat payment rails and neobanking services are playing a crucial role in driving mainstream adoption of cryptocurrencies. Companies like OpenPayd and Damex are providing banking and payments infrastructure for the crypto space, addressing concerns about identity, traceability, and money laundering. By offering fiat on-ramps and payment rails, these firms are bridging the gap between traditional finance and the crypto world. However, there is still a need for greater understanding and acceptance of cryptocurrencies by banks to fully integrate them into the financial system.
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