Swiss fintech company Fiat24 is revolutionizing the banking industry by utilizing Web3 technology. They are leveraging ERC-721 tokens to represent clients’ on-chain IDs and ERC-20 tokens for deposits.
Throughout the evolution of online banking, the challenge of gaining user trust and confidence in utilizing new technologies has been a difficult one. As the transition from paper-based processes to fully online ones took place, it took time for people to adapt to using apps instead of traditional methods.
In the emerging era of Web3, the acceptance of non-fungible tokens (NFTs) as a replacement for traditional e-banking will take time. However, Fiat24, a Swiss fintech company, is leading the way by rebuilding banking infrastructure using Web3 technology. They utilize ERC-721 tokens to represent clients’ on-chain IDs and ERC-20 tokens to represent their deposits.
NFTs have come a long way from their initial hype as images of apes, penguins, and kitties. They have the power to revolutionize various industries, including real estate, experiences, and ticketing.
As smart contracts gradually replace centralized computer programs, the role of NFTs becomes increasingly important. NFTs can directly interact with the parameters stored in their metadata, enabling them to provide different services to different holders.
For Fiat24, NFTs are used to represent client identities, allowing the platform to identify individuals within their ecosystem. Additionally, NFTs serve as legal proof of ownership for clients, proving that they are the rightful account holders. They also act as access keys to the account, allowing clients to log in effectively. Furthermore, NFTs contain all the necessary logic for performing banking activities.
Fiat24 offers features beyond those of a typical Swiss bank account. They open a Swiss IBAN account for clients, with the last few digits of the account corresponding to the NFT number.
Customer account balances are represented using ERC-20 tokens, and all operational logic is executed through smart contracts. This enables customers to manage their online banking directly in their preferred noncustodial wallets, such as MetaMask. They can seamlessly convert their digital assets into fiat currency using the efficient payment network provided by ERC-20 tokens.
Compared to traditional payment networks like SWIFT and SEPA, ERC-20 tokens offer better efficiency and accuracy, resulting in faster and more precise transfers. The programmability of ERC-20 tokens allows for automated financial processes, eliminating the need for intermediaries like banks. Additionally, the decentralized nature of blockchain increases transaction speed and reduces costs, making ERC-20 tokens an optimal solution for cross-border and peer-to-peer transactions.
By combining ERC-721 and ERC-20 tokens, smart contracts can replicate all banking functions. Fiat24 aims to rebuild banking structures using Web3 technology and has connected with traditional payment networks like SWIFT, SEPA, Visa, and Mastercard.
Owning a Fiat24 NFT offers numerous benefits. The NFT represents a Swiss international bank account number (IBAN), and once KYC verification is complete, it functions like any European bank account. However, it stands out because users can seamlessly convert digital currencies into fiat currencies (EUR, CHF, USD) and receive a Visa debit card to access their account balance.
Acquiring a Fiat24 NFT currently requires burning one F24 token. The project is built on Ethereum layer 2 Arbitrum, and the Arbitrum DAO has provided support for the project. Fiat24 has also received ARB tokens through a grant from the latest LTIPP, with an airdrop expected soon.
The integration of Web3 technology into banking represents a significant shift towards more decentralized, efficient, and secure financial systems. As more fintech companies adopt blockchain solutions, traditional banking processes will evolve, offering greater flexibility and innovation to users worldwide.
To learn more about Fiat24, visit their website.