Due to their existence in the same digital space, digital money and cryptocurrencies have a lot more in common than most people think. Before cryptocurrencies entered the market, digital money served as the only means to carry out financial transactions online. However, the online banking industry witnessed drastic changes in the past decade ever since banks and financial institutions opened their doors to cryptocurrencies. With the huge amount of investments in technology and innovation through the years, crypto assets have become a standard feature of digital finance as more tech-savvy consumers started to embrace crypto as their electronic money of choice for all their online banking needs.
How Fiat and Digital Currencies Co-existed in the Same Space
When Stanford Credit Union launched the first website for banking services in 1994, it did not know then how this would serve as the progenitor of modern banking. Not only did this milestone mark the start of internet banking, it also enabled fiat currencies to thrive in the digital realm, as worldwide demand for digital services skyrocketed in an instant, according to UBS.
Interestingly, it took 13 more years for electronic banking to achieve the next level and become a more competent, universal, and readily accessible type of banking service. This was made possible by the launch of Apple’s first iPhone in 2007, under the tutelage of the late Steve Jobs. It was the iPhone that accelerated the development of mobile banking and spurred the development of banking apps for smartphones.
Two years later, in 2009, the mysterious Japanese developer Satoshi Nakamoto introduced Bitcoin, the first and now the largest cryptocurrency by market capitalization, per Investopedia. Back then, it was almost impossible to think that the two worlds of cryptocurrency and digital money could collide. However, the rapid advancements in financial technology during the early 2010s initiated a ripple effect in the global banking sector that paved the way for the introduction of digital banks and fintech firms that made it possible for digital fiat and cryptocurrencies to exist on the same platform.
Fiat-to-Crypto Gateway: Defining the Bridge Between Fiat and Crypto
The advent of crypto ushered in big changes in traditional banking. But despite the numerous advantages it has to offer over standard online currency, the adoption of digital assets is still not as widespread in the mainstream, and this is where the need to bridge the gap between fiat and cryptocurrencies comes in. The bridge is the platform or system that makes it possible for fiat to seamlessly convert into crypto and vice-versa.
UTORG, a company that runs a proprietary non-custodial decentralized crypto wallet, has coined a term for this so-called bridge or medium — the fiat-to-crypto gateway. According to UTORG, this payment gateway bridges or facilitates transactions between traditional financial systems and the world of crypto. It plays an important role in today’s landscape of digital banking since it makes it possible for government-issued fiat money to be converted into digital assets running on cryptographic protocols.
For this fiat-to-crypto gateway to work, it needs to have access to the technologies, products, services, and features used by both systems. As such, it can seamlessly facilitate the safe and secure transfer of funds from a bank to a digital wallet. In other words, it serves as an intermediary that converts fiat money into its equivalent cryptocurrency based on the exchange rate available in real-time.
How Black Banx Bridges the Gap Between Fiat and Digital Currencies
Black Banx is one of the standout brands in the fintech industry right now. The neobank by German billionaire Michael Gastauer launched in 2015, offering a platform that combines the best of digital banking and digital wallets in one platform. By leveraging artificial intelligence, blockchain, and machine learning, Black Banx can provide a flawless user experience to clients who yearn to push the boundaries of modern banking.
Gastauer’s in-depth knowledge of crypto banking is evident in how Black Banx operates its crypto trading and exchange service. The digital bank, which is accessible via its official website and mobile app, is equipped with a digital facility where customers can readily deposit, convert, and transfer cryptocurrencies, particularly Bitcoin and Ethereum. Other banks and financial firms rely on separate cryptocurrency wallets to access these features. At Black Banx, there is no need for those since the platform acts as a one-stop shop for fiat and crypto exchange.
Both private/personal and business accounts offered by Black Banx are capable of storing and converting 28 fiat and 2 cryptocurrencies from and to one another. Currency exchange and trading services are available 24/7 and follow real-time exchange rate values. This allows Black Banx subscribers to send and accept local and international payments almost instantly, regardless of the supported fiat or crypto used. As of late, approximately, 80% of the digital bank’s operations are in cross-border payments, while 20% accounts for crypto-related transactions. Based on the latest developments and expansions made by the brand with more than 40 million international users. Black Banx is poised to become a leader in crypto banking soon.
