The world of cryptocurrency continuously evolves, offering new opportunities for individuals to enter and exit the digital asset space without reliance on traditional banking systems. In this blog post, we will explore some fiat to crypto on-ramps and off-ramps I have discovered, which are available today. KYC and AML are out of scope for this blog post. Almost all of the products discussed here have some degree of identification requirement. Our purpose is to identify the growing options for the general public to participate in the cryptocurrency economy.
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One notable option is Stellar, which provides a seamless on-ramp for users through Moneygram deposits using the Lobstr wallet. With Stellar, users can deposit fiat at a Moneygram location to convert to USDC, and then easily swap it for other cryptocurrencies. Additionally, Stellar serves as an off-ramp, allowing users to withdraw USDC as fiat at Moneygram locations. This convenient integration between Stellar and Moneygram opens up new possibilities for individuals looking to transition between fiat and crypto. In fact, keeping USDC in your wallet performs the function of a bank.
As I was wrapping up my research I also discovered a similar arrangement with Solana and Moneygram using the Decaf wallet. It is possible to deposit fiat at a Moneygram location to convert to USDC.
Another major player in the field is PayPal, which recently launched its own stablecoin called PYUSD. They have also announced that they intend to serve as a crypto off-ramp, although they offer a limited number of coins. Their stablecoin connects PayPal to popular cryptocurrency platforms such as Coinbase and Crypto.com, where PYUSD deposits are accepted. This integration is particularly advantageous for investors, as they can deposit cash into their PayPal accounts at various retail locations, like Walmart, and then exchange PYUSD for other cryptocurrencies on supported exchanges.
Spritz.finance is another innovative platform that offers direct cash-outs of crypto to checking accounts or payments to vendors. This service allows users in the United States to connect their wallets and easily cash out crypto to pay for utilities, credit cards, or other household expenses. Additionally, Spritz provides cash off-ramps, enabling users to send cash directly to their personal checking accounts. The platform's focus on transmitting money means it requires minimal account verification, making it accessible to a wide range of users.
When considering these fiat to crypto on-ramps and off-ramps, it's important to understand their unique features and limitations. For example, PayPal's PYUSD is built on the Ethereum blockchain, which may result in high gas fees during periods of network congestion. In contrast, USDC, available on Stellar, has lower transaction fees and faster settlement. However, it does not bridge as easily to other blockchains, requiring use of exchanges.
While these platforms provide convenient access to the crypto world, it's essential to consider the potential limitations and risks associated with centralized control. PayPal and Moneygram, for instance, have been known to block users from accessing their services. However, these restrictions typically occur within their own ecosystems and are triggered by suspicious activity. The off platform nature of many stablecoins, combined with non-KYC wallets, ensures that transactions remain relatively private from those platforms and secure from their seizure. They're responsible for monitoring you when you're on their platforms. But outside their platforms, you would have to ham things up majorly to trigger wiping out your stablecoin.
These fiat to crypto on-ramps and off-ramps are particularly beneficial for the unbanked population, providing them with access to financial services that were previously inaccessible. However, even for those with traditional bank accounts, some banks may block crypto purchases using debit cards. In such cases, it may be simpler to convert fiat to crypto through other means, such as Visa Fast Funds or Mastercard Send, which allow users to credit fiat directly to their accounts.
Furthermore, several platforms offer debit cards that enable users to spend their crypto directly. The Crypto.com Visa card, Coinbase Visa card, and other similar services allow individuals to load their cards with crypto and make purchases seamlessly. Additionally, Spritz offers a virtual Visa debit card that can be reloaded directly from crypto. Even PayPal has a debit card that can be used to spend fiat converted from crypto.
There are other players out there such as crypto ATMs and Coinme kiosks that allow for fiat on-ramp. However, from my experience, these often have high transaction fees, making them unpalatable unless you have no other options.
In summary, the fiat to crypto on-ramps and off -ramps discussed in this blog post provide individuals with convenient and accessible ways to enter and exit the cryptocurrency market without a bank. Whether it's through platforms like Moneygram, PayPal, or Spritz.finance, users can easily convert fiat to crypto and vice versa. These on-ramps and off-ramps not only cater to the unbanked population but also offer options for those with traditional bank accounts. Additionally, the availability of debit cards linked to crypto wallets allows for seamless spending of digital assets. As the cryptocurrency landscape continues to evolve, these fiat to crypto on-ramps and off-ramps play a crucial role in bridging the gap between traditional financial systems and the world of digital assets.