Crypto and Fiat Economies Converge: 3 Exciting Stories From 2022

In spite of increased volatility in the past few months, blockchain assets continue to make forays into the ‘real’ economy. From Bitcoin being used to support truckers in Canada to a major crypto platform adding support for more and more fiat payment systems, here are the best recent examples of the two worlds finally coming together.

Alfa Romeo’s Tonale SUV will use NFT maintenance certificates

Many called the NFT boom of 2021 a bubble, and NFTs themselves useless. However, we may be witnessing the emergence of a new generation of non-fungible assets: utility NFTs, to be used by major companies as part of their products – and not just as a marketing tool.

Alfa Romeo is one of the first to try this utility NFT approach. Its new SUV will generate an NFT proof when maintenance is performed by certified dealers. This will allow the manufacturer, dealerships, and potential buyers to better estimate the condition of each vehicle, since regular servicing papers aren’t fully reliable.

Also, Alfa Romeo representatives point out that such NFT-enabled SUVs will be seen as more valuable in the market, since they will be the first to leverage this technology.

Another interesting example of real-life NFT use is the sale of a home in Florida through an ETH auction, where the property deed was minted as an NFT. Since there is no legal framework to attach real estate ownership to NFT ownership, the buyer will own the house through a specially created LLC.

This last detail points to the many issues that the NFT market will have to solve to be integrated into the real economy. Artworks, houses, diamonds, and all sorts of unique physical items can be – and probably will be – sold as NFTs, but the industry needs to work together with the regulators to find ways to protect the property rights of those who hold such NFTs.

Exscudo now supports 10 fiat systems

Another positive sign is crypto platforms integrating more fiat payment systems. Converting between fiat and cryptocurrency remains a big pain point for many – and it’s unlikely that mass adoption will materialize if users don’t have simple tools to both buy crypto and cash out.

Many existing platforms support credit cards, but it’s not enough, since in many countries consumers prefer local e-wallets to cards. Plus, the fees on buying Bitcoin with a card are often excessive – especially when using those few blockchain wallets that have this feature.

Ideally, you’d want to see crypto wallets that natively support fiat currencies in some wrapped form and allow low-cost deposits and withdrawals using a wide range of payment systems. One of the first pioneers of this approach is Exscudo, which offers both a non-custodial wallet with a built-in blockchain messenger (Fintap) and a payment solution for businesses (MultiAcquiring).

In February 2022, the company reported thatFintap now supports 10 major fiat systems, including MasterCard, SEPA transfers (very popular with Europeans), PayPal, and Payeer. Moreover, users can store USD, EUR, and RUB in the wallet, together with over 50 cryptocurrencies.

Near-instant conversions between crypto and fiat are possible thanks to Exscudo Exchange Core, a special system that sources rate quotes from multiple brokers, OTC platforms, and market-makers, and selects the best exchange rate. The fees are kept low by using a ramp developed in-house (as opposed to third-party solutions utilized by other wallets).

Exscudo’s B2B product, MultiAcquiring (also known as CryptoAcquiring) offers the same level of flexibility. Merchants can accept both fiat and cryptocurrency and even set up automatic conversions if they wish to receive the revenue in a currency different from the one used by the customer for payment.

Exscudo’s example shows what a regular user’s crypto experience will look like in a couple of years: switching effortlessly between cryptocurrency and fiat without having to worry about fees or available conversion pairs. In fact, Fintap supports over 600 pairs, both crypto-crypto and crypto-fiat.

Tallycoin fundraiser gathers 20 BTC for protesting truckers

The recent convoy protests in Ontario were very controversial: as truck drivers blocked a crucial bridge, demanding an end to Covid-19 vaccine mandates, trade between Canada and the US was disrupted. The authorities were even forced to proclaim a state of emergency.

However, the role that Bitcoin played in the matter highlighted the ability of cryptocurrencies to serve users where fiat money cannot. The first fundraiser to support the truckers, organized on GoFundMe, collected millions in fiat USD – only to be frozen by the platform, with all donations refunded. As a solution, a group of Canadian Bitcoin enthusiasts started a BTC fundraiser on Tallycoin, which raised around 20 BTC, or close to $1 million.

The crypto fundraiser also received the support of such prominent figures asElon Musk and Kraken CEO Jesse Powelll.

While the justifications for the protests are debatable, it’s very important that cryptocurrency is starting to play such an important role in the donations space. It allows users from all countries to donate on equal terms – as well as deliver the funds directly to those who need them.

It’s worth noting that Twitter recently introduced tipping with BTC via Lightning Network – another example of crypto donations (or microdonations in this case) starting to make way in this traditionally fiat-dominated niche.

One problem that remains to be solved is how – or if – crypto fundraisers should be regulated, and what to do if the authorities find such a campaign unlawful. In Ontario, the protests eventually turned quite unruly when truckers were joined by crowds, and the governmentordered for the protesters’ financial assets to be frozen under the Emergencies Act. This also meant the BTC that had been raised through Tallycoin.

However, on-chain and off-chain data shows that most of the BTC was still distributed to the truckers. While Bitcoin evangelists hailed this fact as a victory of censorship-resistant crypto, one could argue that true mass adoption will require cooperation, not conflict, between the crypto community and the authorities.

We’ve highlighted both the potential and the challenges of integrating crypto with the real-world economy. This year could be crucial for overcoming the challenges to seize that potential. Perhaps 2022 will be the year of convergence – a necessary prerequisite for real crypto adoption.