Fiat Integration

Definition ∞ Fiat integration refers to the process of connecting traditional fiat currencies with digital asset platforms or systems. This allows users to seamlessly convert between fiat money, such as USD or EUR, and cryptocurrencies or other digital assets. Such integration facilitates broader adoption by making digital assets more accessible to the general public.
Context ∞ The current focus in fiat integration is on improving the speed, cost-effectiveness, and security of on-ramps and off-ramps for digital assets. Discussions often involve partnerships between cryptocurrency exchanges and traditional financial institutions, as well as the development of new payment rails. A critical future development to observe is the impact of regulatory clarity on the willingness of established financial players to engage in deeper fiat integration.