The world’s largest digital currency trading platform, Binance, started testing its beta version of fiat-to-cryptocurrency exchange in Singapore a few weeks ago. News about the launch of the fiat exchange were received positively as the country allows the use of virtual currencies and enjoys government support.
But Binance’s decision to launch a fiat exchange in Singapore is not surprising at all. This is because the Asian country is considered an international economic hub with fairly low taxes and a technology-friendly atmosphere.
Singapore has a reputation of being favorable when it comes to launching initial coin offerings (ICOs). As Binance tests its fiat-to-cryptocurrency platform in the country, expectations are high that it will open up it to all users in the coming months. Such a step will likely increase the success of ICOs in the country.
Better User Experience
For Binance, the testing of the fiat-to-crypto exchange is a way of improving user experience in Singapore. Such an exchange would allow for effortless conversion of various currencies for users, and enable them to carry out transactions directly from their accounts in the exchange.
In addition, the fiat exchange will offer interbank exchange rates that are more favorable compared to retail exchange rates, thereby offering users more value for their money. According to Ales Zizmund, MBA, CEO of 4th Pillar, any action taken to advance and improve how customers view the services they receive is a good idea.
He says, “We believe that all steps taken to improve customers satisfaction and user experience are more than welcome, especially if they offer a wider range of services and opportunities. This is also one of our main issues when building our The 4th Pillar platform. For example, we also anticipated on our platform that not all customers are aware of cryptocurrency benefits that is why we are offering them instant payment in Fiat through our platform.”
Addressing ICO Gaps
The need to find solutions that incorporate fiat payments in ICOs while ensuring compliance with different global legal entities has been great in the cryptocurrency industry. In a way, the fiat to cryptocurrency trading platform will address this need and most likely, change the industry significantly.
By allowing users to purchase cryptocurrencies with fiat currency, the exchange will allow prospective investors to conveniently invest in ICOs. For investors, the greatest benefit of fiat acceptance is the fact that they will be able to make direct payments to ICO startups like Epic Mega, Noiz Chain and LiveTradr, regardless of what fiat currency they hold.
The ability of the fiat to cryptocurrency trading platform to transfer large amounts of money will boost ICO startups and make it easy to transact through automatic currency conversion. Solutions to further improve features of the fiat exchange will lead to a more secure transactions and contribute to the growth of the ICO industry.
Disclaimer: David Drake is on the advisory board for most of the firms mentioned or quoted in this article.