When NFT becomes a Swiss bank account, will this Dapp be the future of banking?

Golden Financial Reporter Jessy

A revolution in the traditional banking industry is taking place, followed by a change in the way of depositing and withdrawing funds in the encryption industry.

When the payment, clearing, settlement and other functions of traditional banks are all on the public chain and connected with cryptocurrencies, a very imaginative application appears. This is a Dapp on Arbitrum——Fiat24, which links encrypted wallets and traditional banks. Through this Dapp, users can register to have their own Visa card, and at the same time, users also have an NFT account, and this NFT account is It can partially replace the user's traditional bank account.

Because the Dapp integrates a series of Web3 services and is governed by Swiss banking law, it can run some banking functions. On this account, the user can complete the conversion of encrypted currency to legal currency, complete the deposit and withdrawal, complete the foreign exchange exchange of legal currency, and bind the user's Visa card to some payment platforms for consumption, as well as withdraw money from ATMs that support NFC , basically can be normally used as a Visa card. And some of these behaviors happen on the chain or are recorded on the chain by the execution of smart contracts, which need to consume gas fees.

We can also think of the Dapp as a core banking system completely built on the blockchain and driven by smart contracts. The revolutionary role of the Dapp is to break through the wall of the banking and encryption industry. In traditional electronic banking, users use usernames and passwords to access their bank accounts, and they usually receive text messages to obtain transaction confirmation codes. Complete the payment instructions. All customer data and transaction records are stored in the bank's back-end databases, which are single points of failure. **On the Fiat24 platform, each customer holds a unique NFT to represent their identity, and access their cash account through this NFT, completely abandoning traditional accounts and passwords. For the traditional banking industry, this is undoubtedly revolutionary. **

**What can people do with Fiat24? **

Currently, Chinese and American users are not allowed to use the Dapp. Only 24 countries are allowed to use the service. The process of opening a visa card in its account is the same as opening a card in a traditional bank, and it also requires strict KYC.

According to its official website, users can directly exchange the encrypted currency in the wallet into legal currency and deposit it into their account through the Dapp. According to the exchange address on the tracking chain, we can find that this step is achieved by first converting various cryptocurrencies into USDC in Uniswap, and then USDC is converted into US dollars by the Centre. On the user side, users click to sell their own virtual currency, and soon they will find that the Visa card in their account will show that the cash has arrived. This is performed by means of written smart contracts.

This process is also called recharging the account with cryptocurrency. During the process, the user authorizes Fiat24 to access the USDC in the Ethereum wallet linked to the account, and signs and confirms the transaction through the wallet signature request.

Sell virtual currency/recharge cryptocurrency to account

In terms of withdrawal, you can use the Visa card for direct consumption, or you can bind another bank card with your own account, and this bank card for withdrawal needs to have the IBAN function as required. However, it is only **if the withdrawal from the Fiat24 account is to an account with an IBAN, there is no such requirement for the direct recharge of fiat currency to the account. **

The logic of traditional banks in electronic payment is to book first and then liquidate. The visa card is the same, but the bookkeeping of this process takes place on the chain. For example, in the exchange of foreign exchange, Fiat24 also maps the process of swapping the US dollar to other currencies on the chain, so in the currency exchange, the gas fee consumed in bookkeeping is consumed.

Fiat Currency Exchange Page

gas consumed by foreign currency exchange

According to the demo provided by Fiat24, we can see that the Visa card can also be used to directly complete transfers, consumption, and limited types of foreign currency exchange.

According to the project party, they meet the same anti-money laundering requirements as traditional financial institutions, and the compliance infrastructure and processes have passed the audit of BDO Switzerland.

A "bank" powered by smart contracts

This is a change to traditional banks. Switzerland allows a fintech company to do some of what traditional banks do. And the core business process is carried out by smart contracts. For example, the process of recharging cryptocurrency into fiat currency in this account is realized by integrating multiple services, but these processes are all written into smart contracts and executed according to smart contracts.

For the traditional financial industry, the clearing system is very complicated. Funds need to be transferred through multiple clearing systems of banks, central banks and international organizations to arrive at the account. However, the use of blockchain can realize point-to-point instant payment, and transfer electronic funds on the blockchain. Currency, cross-border payment can greatly reduce the time of arrival, reduce the cost of cross-border payment, and improve efficiency.

For the banking industry, blockchain, as a highly digital, secure and anti-interference ledger, can be used to realize the core function of the bank: that is, as a safe storage and transfer center of value.

Fiat24 can be said to be an iteration of banking business, because it integrates multiple services, such as uniswap's currency exchange, Centre's U-to-fiat currency, etc. Write smart contracts, so it can achieve a relatively smooth exchange experience from cryptocurrency to fiat currency.

Compared with Visa and MasterCard launched by Onekey, Depay, etc., the biggest difference is that Fiat24 is allowed to have some bank functions and accept supervision. Similar to Onekey, Depay is to find an encryption-friendly bank to cooperate with.

But risks also exist, and Fiat24 inevitably precipitates the capital pool. But on-chain makes all processes open and transparent, risks are not black boxes and can be discovered quickly. And when these processes are executed in accordance with smart contracts, there is no way to tamper with them.

In addition to building a bridge between Web2 and Web3, Fiat24 has also added some very Web3 gameplay, such as launching the sale of metaverse land and issuing tokens for the project.