The representation of money and monetary systems have vastly changed over the years. In historical times, many considered the bartering system to be the best medium of exchange. It originated the trade of goods/services, which helped grow the global economy. But it wasn't a good medium to store wealth, and price discovery of certain goods was always a challenge.
To overcome this fragmented system of monetary exchange, we saw valuables like gold emerge and create a whole new standard for a country's economy. While this standard did help in limiting the inflation imposed by the governments, it did not facilitate creating a sustainable growth model for the economy.
The stability problem was addressed by creating fiat currency. Starting with paper and then moving to digital currency, people can now use credit cards and many other digital cash systems to seamlessly transfer value in the form of currency. This crossover between finance and technology did wonders to end-user experience with money transfers. But it also has many limitations. Cross-border payments are expensive, and the majority do not have access to fintech applications.
Enter Decentralised Platforms Powered by Crypto Assets
Decentralised finance is introducing the world to a new system where there are minimal entry barriers, and people can carry out borderless payments at low costs. Not only that, the capital-efficient models in DeFi provide users with returns greater than traditional banking through staking and farming. With more mainstream acceptance and participation, the DeFi sector is observing a major uptick in locked value and liquidity. As a result, DeFi protocols have become more reliable and sustainable in the long term.
Apart from increased capital efficiency, DeFi also produces many peer-to-peer financial products that promote financial inclusion without needing a bank account. Currently, in third-world countries, businesses are adopting DeFi services for loans, and daily transactions as their traditional banking systems are not fit for the fast-paced digital world.
The impact DeFi is having on people's lives cannot be overstated. The massive influx of capital and the steady increase in active users is proof of that. However, the rate of adoption is still slow as we are yet to see regulated platforms facilitating real-world use cases.
To overcome this, a crypto-to-fiat model is needed that can instantly convert crypto holdings into fiat and allow users to spend in the real world. This will bridge the best of both worlds and add immense utility to crypto assets.
Baanx, The Future of Financial Services
Baanx aims to create regulated and secure infrastructure and services for users and companies by deploying efficient payment gateways and user-friendly, crypto- enabling debit cards. By driving payment innovation and mass adoption Baanx seems to be on the path to building utility around digital assets.
More than 70 million merchants accept the Crypto Life card service offered by Baanx, and users can withdraw cash through ATMs worldwide. Baanx also supports personalised virtual and physical cards that any user, be it retail or corporate, can spend with using fiat currency or their crypto assets. In the case of fiat, the application will automatically liquidate their crypto in the case that the card does not hold fiat, and users can use their debit cards like they always do. In addition to this, Baanx also provides their Cryptodraft, ‘Better Than A Loan’ service that was recently approved by the FCA, allowing users to receive stablecoin payouts by collateralizing their crypto holdings.
To simplify crypto-to-fiat transactions, Baanx has integrated two well-known digital wallet systems, Google and Apple Pay. In addition to such high-level utility delivered by Baanx, the app is also incentivizing users to make purchases in the form of BXX tokens. These tokens can be used to lower interest rates on loans and earn liquidity rewards for staking.
Mass Adoption Incoming
It is only a matter of time before consumers and corporate institutions use crypto-to-fiat financial solutions for everyday use. With an all-in-one platform like Baanx, the transition will be smoother as users will be able to make cost-free global transactions and create more utility around their digital assets. More importantly, it will drastically increase financial inclusion without disrupting the decentralised ethos of the crypto ecosystem.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.