If I have XC on the one wallet card, can I exchange for local currency FIAT? or is it only exchange crypto for crypto.
Yes, according to Antoun, XC will be [exclusively] exchangeable for up to 9 fiat currencies & BTC via cashless BTC ATM's.
If I were withdraw would fiat be sourced from a sell on an exchange? If so, would withdrawals lower the price with every use?