How is layer-2 scaling transforming the global payments landscape, offering secure, seamless and instant transactions?
SPOTLIGHT
A revolution is unfolding in the world of global payments, led by the transformative power of layer-2 technology and serving traditional banking infrastructure, such as financial messaging and card payment networks. Working together, there is a shift in the fundamentals of financial interaction, using groundbreaking technical architecture to enhance security, efficiency and unrestricted access to the global financial network.
E-banking has been a catalyst for the digital development of traditional finance, yet still faces several shortcomings which could be improved using blockchain technology. Users access their bank accounts based on dated practices of usernames and passwords, while transactional confirmation codes are usually obtained through SMS. This cumbersome process makes the system prone to human error and manipulation, thus compromising security. Furthermore, transaction records and processing logics are often managed in banks’ backend systems, creating a single point of failure and exposing sensitive information.
When blockchain meets banking
Fiat24, a Swiss fintech company governed by Swiss banking law, has introduced a decentralized application (DApp) to address these challenges. The platform, operating under a Swiss fintech license, integrates the benefits of layer-2 rollup blockchain Arbitrum to revolutionize the global payments landscape.
The architecture used creates a seamless blend of financial services and blockchain innovation, strengthening security while enhancing convenience. Through Fiat24’s DApp (accessible via its signature NFT), customers are able to use the crypto assets stored in their MetaMask or any other noncustodial crypto wallet to buy a Starbucks coffee, making their tokens instantly available for spending anywhere that Visa is accepted. This revolutionary ability to transform crypto wallets into a payments solution is a unique game-changer for users who wish to put their digital assets into daily use.
Using Arbitrum, an Ethereum layer-2 network, Fiat24 allows for instant money transfers, pioneering a new way to pay, get paid and convert money. As a DApp, it bypasses the need for any additional downloads and can be accessed via any browser or a favorite crypto wallet. This further democratizes access to financial transactions and redefines what it means to be a global payment app.
Fiat24 enables clients to hold crypto assets in self-custody until they are ready to convert into fiat money, further emphasizing user empowerment. Furthermore, this is the only fully regulated financial institution enabling clients to cash out crypto directly via their noncustodial wallets.
The platform already recorded the first-ever card transaction booked on Arbitrum, which was performed using a Visa debit card to purchase an apple.
Advertisement
Claim your wallet ID and do crypto on/off-ramp, effortlessly. Ready, set, XGo!
Source: Fiat24
Chief technology officer of Fiat24, Nico Buechel, commented: “I believe that Arbitrum has achieved great things over the past couple of years and it is very inspiring to see the growth that the team at Offchain Labs have achieved. Arbitrum offers several benefits and there are many reasons why we chose to build on it rather than any of the other possible chains available.” He continued, “Overall, the scalability, low fees, fast transaction times and decentralization are all part of what makes Arbitrum an attractive solution for Fiat24 as a versatile and cost-effective option to bring the best service to our clients.”
Source: Fiat24
By the end of this year (after the Cancun upgrade), even more mature layer-2 solutions for industrialized usage will become available, making transactions much cheaper in terms of gas fees — a huge benefit to users everywhere.
Next stop: Join the payment networks
On the roadmap for September 2023 is another groundbreaking feature, which will be the linkage of Fiat24 account NFTs with a Swiss IBAN (International Bank Account Number), further integrating blockchain technology within the traditional financial system.
To enable this function, Fiat24 has been approved to join the Swiss Interbank Clearing (SIC) payment system together with a settlement account inside the Swiss National Bank (Switzerland’s Central Bank). Once the system is live, the movement of fiat currencies will also be booked on the Arbitrum blockchain in real time. Crypto wallets will no longer be a tool just for digital assets such as Bitcoin
$1,951, but also an extended mobile banking app for fiat money
Leave feedback about this