The Universal Crypto Exit Problem

[nakasato0567]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

Bridges, swaps, exchanges, liquidity providers and what not? Too many steps, too many players in the market.

Main motive to start this Bitcoin was to create an alternative to the Banks. But after a decade when I look back, things were different back then.

To the fresh developers, coders, and crypto innovators out there,

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

[ColdLava40]

Is it really that difficult or complicated?

We already have various P2P merchants on different exchanges, both centralized and decentralized, who are willing to exchange fiat for your cryptocurrency.

The only issue I can think of is the restrictions and regulations in countries where crypto platforms and exchanges are heavily restricted.

Take China, for example, where cryptocurrency is restricted to some extent. These restrictions do not necessarily stop people from investing in Bitcoin, but they can create complications if they are caught violating the rules.

Someone can own Bitcoin but still struggle to convert it into fiat because the government restricts the platforms that offer such services.

[promise444c5]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

You mean Fiat? It’s not really that complicated, unless your country is anti- , definitely you have to take the long route in such cases, unless you can just spend your Bitcoin inform of P2P [not exchange/swap now].

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

So far the end result is expected to be fiat.. nothing can be done. They are 2 different things that can’t co-exist. It’s either you spend direct Bitcoin or you spend direct fiat.

C.exchange already bridged the gap between most of what you listed if that’s what you want but it’s at the cost of taking custody and submitting KYC which will generally cover both Crypto and Fiat..

[eternalgloom]

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Solving technical problem is easy but solving legal problem is nearly impossible.

If you were to build any Universal Exit Layer today, and establish direct peer to peer or automated central bank cashout protocol for banks across all country then FATF, SEC and local financial authority would descend upon you and tear you apart the very next day.

MoonPay, Ramp, Alchemy Pay and P2P none of these are independent. All of them are required to operate with license from respective central bank, as well as local money transfer permit.

Different country have different rule! So, this is not something that can be solved overnight with a single piece of code or smart contract.

[hmbdofficial]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

It’s not that much of a problem for me, if you can’t get real person that want bitcoin in exchange for fiat, there are a lot of p2p platforms that are willing take crypto for your preferred fiat currency.

Bridges, swaps, exchanges, liquidity providers and what not? Too many steps, too many players in the market.

Main motive to start this Bitcoin was to create an alternative to the Banks. But after a decade when I look back, things were different back then.

Yea liquidity can be a problem if one is dealing with very high value of assets in coin but there an also reputation platform with high liquidity that can handle what ever amount you’re dealing.

To the fresh developers, coders, and crypto innovators out there,

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

Maybe why people haven’t thought of it as a big problem is simply because it’s actually not a problem. Crypto particularly bitcoin has just being serving me as alternative money and I never had issues with converting to my countries fiat.

[Asiska02]

Exchanges are already out there offering p2p services to caution that effect and it is working. Maybe the only problem we are facing here is the restriction on the use in some countries since some governments see it as a threat to their fiat especially Bitcoin which is decentralized. The motive to use it as an alternative to the fiat currency is still there, but the government are having a different perception to that which is making it difficult to be adopted globally for that purpose.

[Stalker22]

Most complications are due to governments throwing up massive regulatory walls the moment you try to touch fiat.

That is literally the whole bottleneck... and it is not a tech problem.  Remember back in like 2018-2019 when you could just meet some dude at a coffee shop... or just send a bank transfer... no need to ID yourself, upload utility bills, and submit your blood type to three different exchanges and banks? Good luck doing that now without having your account frozen on sight by a risk algorithm.

Tbh, any new team trying to build the "ultimate exit layer" these days is just going to get run straight into the wall if they dont find a way to do fully-decentralized/localized P2P cash settlements that cant be shut down... but then, scaling that on a global scale would be close to impossible.

[Antidote47k]

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

Bitcoin is a currency but fundamentally it operates differently from fiat, usually when conversion is involved there is usually a procedure, it can be made easier with the likes of p2p and exchanges but in its raw sense it’s still conversion or exchange and fundamentally you would still need to find a buyer, agree on price, receive payment and ensure that the payment channel is available and reliable.

You can say it’s somewhat similar to gold conversion, the two assets operates differently so you would need a proper mechanism to exchange one for the other.

A universal interface might reduce the number of steps or procedures you take but it can’t automatically get rid of local regulations, banking restrictions and risk of the other party failing to pay.

[Aanuoluwatofunmi]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

I still don't understand what you mean by converting bitcoin to usable money when you can still use bitcoin for buying and selling as a digital currency, it's also serve as a unit of account because it has value and this also increases with time, money is not complicated in any country rather than the way the interpret bitcoin revance to themselves and the world, while the standard protocol still remain concerning the Bitcoin network.

[Ambatman]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

Because of adoption. Bitcoin itself is money but is not widely used in many countries
Which would require conversion to the countries original currency
Since that's the legal tender.

Is this the next big problem worth solving ?

It's not a technical problem.
The issue we having isn't really on Bitcoin or that means haven't been created
The biggest issue is that adoption hasn't gotten to the extent Bitcoin is being widely
Used as a medium of exchange.

[Italian Panic]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

Bridges, swaps, exchanges, liquidity providers and what not? Too many steps, too many players in the market.

Main motive to start this Bitcoin was to create an alternative to the Banks. But after a decade when I look back, things were different back then.

To the fresh developers, coders, and crypto innovators out there,

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

I don’t entirely agree with you because it makes no sense to move away from Bitcoin and go back to fiat money. Bitcoin has so many strengths that it just doesn’t make sense return in fiat.
However, there are plenty of ways to use Bitcoin without cashing out, and certainly without doing it in the worst possible way, such as via cex like Binance and Coinbase. The best option is to use services like bitrefill with low fees, allow you to use Bitcoin anonymously and now, with the ark implementation, you can connect a lightning network channel for even greater speed.

[Asuspawer09]

I mean, fiat money is already complicated and depending on what country you are there are a lot of regulations and bans, especially on cryptocurrency so it is surely complicated when it comes to crypto. As it adopts around the globe, governments want to take advantage of it and regulate it, soon we might be paying taxes on cryptocurrency as well. So it's kinda normal I guess to have a complicated process if you wanted to convert your crypto into fiat money, unless you're willing to do the research, it might be difficult for some new investors.

Most of the methods are already working so usually it doesn't take a lot of effort for sure users and they don't create new ones if they know some method works, Like here locally the P2P merchants on exchanges usually works here and it was a convinient way and since the time it is what I've used as well to withdraw, I remember last time I was using a centralized platform and withdaw it directly on an ATM but since it wasn't convinient anymore, I switched to P2P which directly convert my crypto into a bank money.

[passwordnow]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

Bridges, swaps, exchanges, liquidity providers and what not? Too many steps, too many players in the market.

It only becomes difficult if crypto is banned or has some legal issues within the country they reside. I don't think that it's difficult for most countries. Because if so, then all of us are complaining how difficult it is but it's not.

Main motive to start this Bitcoin was to create an alternative to the Banks. But after a decade when I look back, things were different back then.

To the fresh developers, coders, and crypto innovators out there,

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

Not a big problem. There are p2p markets that you can trade and convert with other user and it doesn't require a lot of privacy and kyc. And bitcoin serves its purpose as an alternative to the banking system, we hold it as an asset and as a currency just like what the banks do to us.

[Slow death]

Is this the next big problem worth solving ?

The next major problem that needs to be solved is not the technological aspect since we already have plenty of that but rather the legal side. The challenge lies in convincing most governments to enact sound legislation for cryptocurrencies, enabling people to use them in the real world without any issues. Many years have passed, yet in my own country, I still cannot directly purchase items like a computer, a TV, or a phone using cryptocurrency.

I’m talking about walking into a store, opening my digital wallet on my phone, making a direct payment, and walking out with the product something that seems so simple, yet remains impossible here. This is because my country’s laws contain no provisions allowing merchants to accept cryptocurrencies as a form of payment. While it is true that my government permits the use of cryptocurrencies and even encourages people to acquire them one must always convert them into fiat currency to actually buy anything.

[Questat]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

I still don't understand what you mean by converting bitcoin to usable money when you can still use bitcoin for buying and selling as a digital currency, it's also serve as a unit of account because it has value and this also increases with time, money is not complicated in any country rather than the way the interpret bitcoin revance to themselves and the world, while the standard protocol still remain concerning the Bitcoin network.

People can use bitcoin as a currency but know that its not happening to all countries as there are only limited countries who legalize bitcoin as a currency, and even in countries where they can be considered crypto-friendly, still the merchants accepting bitcoin are still limited. That's because despite of country's legalization, the government is still throwing stone to crypto, particularly bitcoin, and create strict rules and regulations towards bitcoin transactions.

Another thing is, people themselves do not want to spend their bitcoin, why spend when they make huge profits from buying and holding longer.

[JiiBs]

Is this the next big problem worth solving ?

In most countries you say.
I think the nations that have these problems are countries that aren’t cryptocurrency friendly. Even in those countries, a good VPN can get you some good access but then, converting it into fiat since your country currency wouldn’t be listed on the exchange is where the issue comes.

Regardless,
Bitcoin ch on already solved all that and what not. Bitcoin can’t solve the problem of who choose to accept Bitcoin or not, that’s left with very individual that uses Bitcoin. The channels is there for p2p exchange on non custodial wallets without any third party, swaps or bridges just to use it but, we haven’t gotten there yet.

It’s a creeping progress based on the sentiments projected from the government but, we can see how that is changing.

[AVE5]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

Oh baby I guess you should be welcomed to the bitcointalk forum first and then I'd say you threw a very tendered question which should be coming from a newbie.
You're welcome.
Bitcoin transactions is only border less meaning you can process financial transactions through crypto transactions and the block chain network because, the monetary core system and technologies is built decentralized which doesn't need a third party to authorize your transaction unlike it's done in the traditional and banking system.

If the USABLE MONEY you  mean is CASH, then you must know that the exchange platform have to go through obtaining license and legal permission before they can offer their services in the regulatory regions.
Some governments naturally dislike bitcoin or cryptos because they can't get rid of it's total control. Some countries have very flexible crypto rules which allows the crypto user's in that country easily navigates their transactions between the fiats and crypto currencies with some with tight rules also make it difficult for the people.
USABLE MONEY in the other way too, if I may remind or let you know, bitcoin or Alt coins are financial value on their own digital, volatile snd decentralized modality with the potentials to hedge values against Inflation. It's also a purpose that provides alternative means of making financial transactions whether to pay for goods and services as the fiats or serves a potential digital assets.
So it's not just uses being Crypto.

[TastyChillySauce00]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

Bridges, swaps, exchanges, liquidity providers and what not? Too many steps, too many players in the market.

Main motive to start this Bitcoin was to create an alternative to the Banks. But after a decade when I look back, things were different back then.

To the fresh developers, coders, and crypto innovators out there,

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

It's always regulation and regulation that become the biggest hurdle in bitcoin adoption, converting bitcoin to fiat is very easy, almost every country have p2p merchant that you can use, the problem only happen when the country decided to be against bitcoin or crypto in general, things started becoming complicated.

The developers would be more than happy to solve a real problem, especially off ramping where they can make a lot of money by just facilitating an exchange service, but to be able to actually solve it, you're going to need license, robust accounting, adhere to the regulation, and even doing a lobby. That's where things get difficult and make off ramping expensive.

I actually have witnessed attempts to solve this international off ramping problem over the years be it startups or existing company, they usually run very smoothly until it got tackled by the government.

[PrivacyG]

Main motive to start this Bitcoin was to create an alternative to the Banks. But after a decade when I look back, things were different back then.

And Bitcoin IS an alternative to Banks.  I own it and I can use it, Bank free.

Some people had under expectations, others had way too many.  If some body hoped for a movie like event where every body suddenly leaves Banks for Bitcoin and Banks have no choice but to die in front of financial sovereignty, these were simply childish dreams.  We are all way too deeply linked to the Fiat system to be able to escape it this easy, but Bitcoin, Monero and the likes do offer an actually viable alternative even if it is not becoming a 'legally adopted' variant of a Currency like others expected in the past.

[shinratensei_]

Bridges, swaps, exchanges, liquidity providers and what not? Too many steps, too many players in the market.

You may not notice it but centralized entity like Bank abstract these thing away with massive fee. Your international payment is settled with premium FX rate and this in an essence is the same as swapping. You don't need to think about liquidity provider because Banks do it for you and they charged you for it either through spread or direct fee, the blockchain make the participating user a liquidity provider so they can earn the money for themselves, you don't even need to exchange your BTC through centralized exchange if your ultimate goal is to use it. What is usable money anyway? BTC is usable money and spendable to merchant that accepts. If you want the same convenience just use BTC debit card. They'll handle everything for a fee hence why it isn't really a "problem".