The cryptocurrency community is always looking for new methods to use decentralized finance (DeFi) technologies in order to close the gap that exists between conventional finance and fiat currencies. A main means through which consumers may traverse between these two financial ecosystems is via the use of crypto on-ramp services.
In addition, if there are complications throughout the transaction process, there is a possibility that as many as 90 percent of customers would leave their purchases in the middle of the flow.
The research looked at nine of the most popular fiat-to-cryptocurrency exchanges, such as Coinify, MoonPay, Transak, and Wyre, among others.
According to the statistics, the performance of the different onramps varies greatly; nonetheless, the position of the user is one of the primary elements to consider. The transaction success rates in Europe were among the highest in the world, while those in Africa and South America were among the lowest.
Payment methods, the fiat currency that was converted into cryptocurrency, and the available trading pairings are some of the other elements that influenced transactions on cryptocurrency exchanges. The use of bank transfers as a means of payment has been shown to have higher success rates in transaction completion rates, reaching almost 100% success in two separate cases.
In addition, the value of the transaction was a significant factor in determining whether or not it was successful. Transactions ranging from zero to twenty-six dollars had an authorization rate of sixty-six percent, whereas those with a value of more than five thousand dollars had an authorization rate of nineteen percent on average.
The study came to the conclusion that one of the potential solutions to problems with transaction authorisation might be for token service providers to provide as comprehensive a selection as they can manage of aggregated onramps via a single interface. Another solution is to dynamically route transactions in order to provide consumers with the solution that is most suitable for their circumstances.
Paolo Ardoino, chief technical officer of Tether, made this statement not too long ago at the World Economic Forum. He referred to the platform’s stablecoin Tether (USDT) as an on-ramp for Bitcoin (BTC).
The Hong Kong Monetary Authority has identified its soon-to-be-released retail central bank digital money as a possible entry point into the decentralized finance arena.