Fiat Money is a legal tender in circulation issued by government and authorities which is “Centralized” It has to do with a person revealing some of his personal informations to perform transactions.
To have vivid understanding about FIAT money,one should have a clear picture of what money is, it can be dated back to the days when civilization was primitive there was nothing as money.
With low productivity at that era, people were able to produce items needed for personal use, there was lack of amenities and services as a result of no medium of exchange.
However, thanks to rapid productivities unnecessary items were produced based on the exchange and people started to trade these items with one another which was an upbringing to barter based economic with varieties of items produced, as times passes barter trades become obsolete and it’s service was no longer required anymore.
As the needs arose, a universal equivalent:an object that which was the measure, all item were compared and exchange on the market came into existence.
In Nigeria one of the largest countries Africa before being colonized chose the means of exchange as cowries, beads,bottle, farm products and so on, shilling and pence were introduced as a legal tender in British West Africa 1880.
The Naira was introduced on 1 January,1973 replacing pounds, shilling, pence Monetary system. Nigeria was the last country to abandon this system amongst the colonized countries.
Gradually,Paper Money becomes a universal equivalent which is easy to carry out daily routine. It has no inherent value, various countries have different paper in circulation.
Instance, the cedi is the official currency in Ghana, Naira as the official currency in Nigeria, Tanzania uses tanzanian shillings, China uses Renmibi as their official currency and European union adopt euro as their currency.
As for the U.S Dollar, it has become a universal currency before paper money went into circulation, government had adopted currencies with intrusive value.
The followings are associated to Fiat money:-
Issuance
Government and appropriate authorities issues fiat money, its total supply is not static and government dictates it’s issuance based on domestic values.
Circulation
Within the border of a nation Fiat money can be circulated freely with the endorsement by the state,no one nor an organization can refuse to accept Fiat as a means of payment. For example trading with fiat includes offline and online transactions such as payment through Cash App,PayPal’s, Chipper cash, mobile banking applications which are either used for purchasing items online, booking of flights,reservation of spots and anything related to Fiat transactions.
Moreover, the fiat money issued in various countries are mostly exchanged into another currencies to trade with people from other nation. Therefore trading with Fiat money that is not recognized by a particular county at the point of exchange might be rejected.
Risks
The risk of holding fiat money is low, given the endorsement by the state or nation, however the value of a fiat may suffer from hyperinflation. For example, Naira witness rapid depreciation of its value to Dollar since 2014 till date.
With the above enlightenment about about FIAT Money is, it’s a surprise to know that paper money has been integrated into crypto world of which many crypto exchanger supports it.
Nowadays, Fiat money can traded with top coins such as BTC/USD, ETH/USD and SOL/AER. To expiate how fiat money become widely recognized on trading platform, I will be using “BITGET EXCHANGER “ as a point of detail.
BITGET is crypto exchange based in Singapore with lot of user everywhere in the world. The platform renders a vast selection of crypto coins and token that can be traded through the spot or future market with low trading fee. It was founded 2018 by Sandra Lou, the CEO and Co-founder, it has received regulatory licenses from US, Canada and Australia making them a trusted exchange. It’s one of the leading exchange that accepts users depositing and withdrawing of Fiat money, irrespective of its currencies NGN,USD,EUR,JPY,VNR,GBP and ZAR etc which are made through the use of the following methods
1- Express Mode
It is a feature that let users place orders directly by entering that Fiat amount desired to buy or sell
2- Peer to Peer(P2P) services
A peer to peer (P2p) service is a decentralized platform whereby two individual interact directly with each other without any intermediary or a third party whereas the buyer and seller transact via p2p services. Bitget offers p2p services unlike anything witnessed, which is fast, simple,safe, reliable and seamless. They offer the best coin rate and has many traders rendering the service whilst Bitget monitors the transaction and don’t interfere if not needed to, funds are transferred from the buyer local banks to the seller’s: once the transaction is confirmed the coin will be released into the buyer’s p2p account which can be later transferred to either spot or future account based on preferences.
Personally, I vouch for Bitget p2p services with 100% assurance because all my deposits are done using Fiat money and I uses p2p all the time.
3- Third party
Third party simple means the attempt to use an account that is not listed on the main method of payment whereby the desired coins are bought directly using a service provider, such as Banxa, Simplex, Mercuryo and Moonpay etc in which the payments are done using either Visa, Pay ID or Mastercard. Third party is one of the services rendered by BITGET which like the other, is less tedious and fast as well.
The benefits of using the fiat channel to deposit cannot be overemphasized it’s mind boggling and zero transactions fee compared to purchasing from outside BITGET which transactions fee will be deducted when depositing or withdrawing.
In Addition, it’s an exchange that gives room for keeping a depreciating currencies against inflation, that is: keeping local currencies in TETHER
Tether (USDT) is a popular STABLECOIN that crypto enthusiast have used for years to leverage their cryptocurrencies trade.
USDT is affixed to the US Dollar currency and in theory it should be unaffected by the market volatility that can dramatically impact the value of cryptocurrencies.
BITGET, DOES CRYPTO BETTER
THE PERFECT 10/10 CRYPTO PARTNER
