A much-awaited fiat-to-crypto onramp has now been launched by Nimiq, an open-source blockchain technology project. The project, founded a little over four years ago, works towards the development of borderless transactions and transfers while making crypto accessible to everyone.
“We are now excited to present the result of years of original research, development, and regulatory finesse: Nimiq OASIS is finally here!” said the project in a release shared with CryptoSlate.
OASIS (in its current ‘public beta’ version), is a protocol that makes it easy for off-chain assets such as EUR, USD, stock certificates, web domains, among others to be transferred as if they were tokens on a blockchain.
How the Nimiq wallet works
The open-source protocol’s most prominent user is German fintech firm TEN31 Bank, which provides an API to their Euro-HTLC implementation. And now, the bank’s own network will be utilized for enabling easy fiat-to-crypto transfers via the new Nimiq wallet built on OASIS.
The fiat (for the above) would be present in an escrow at a fully-licensed German bank, which Nimiq says are, currently, more trustworthy than using unregulated crypto exchanges.
Nimiq says its self-custodial wallet would allow a complete crypto newcomer to both create a wallet and buy NIM (Nimiq’s native token) and BTC directly from their bank account in under five minutes, without registration, and at a small fee of 1.25%.
This is unlike most crypto purchase experiences for newcomers today—users need to first find a crypto exchange that supports fiat currencies, request their bank to process a payment (this is a headache for many), wire the amount, deal with KYC procedures, and then finally receive the amount over 2-3 days later.
With Nimiq, users can avoid that process altogether. Simply access the wallet here, quickly set up a new account, purchase crypto, and be on your way! There’s no installation or registration required – not even email.
Swapping limits and zero risks
As per the release, buying, selling, and swapping cryptocurrencies is limited to 500$ (~400€) per transaction and 1000$ (~800€ ) on a 30 days rolling window. The limits may be increased in the coming months, but that, however, would require additional authentication (KYC).
“While supporting larger swaps is certainly on our roadmap, we believe current limits to already enable most individuals to participate in the cryptoverse,” Nimiq said.
Nimiq’s upcoming transition to Proof-of-Stake will make the protocol one of the fastest single-chain protocols in the world, with the upcoming Nimiq 2.0 said to be the “most significant” upgrade for NIM swaps because of its high transaction speed of around 1 second.
There are some improvements on the banking side as well: Nimiq says banks’ new APIs are expected to have a considerable impact on the entire process, in addition to reducing time spent waiting for EUR transactions to register.
Meanwhile, because Nimiq uses the pre-funded escrow mechanism of non-custodial atomic swaps, the process helps to eliminate bilateral (counterparty) risk, meaning users can trust the fast, accessible, and simple process for all their fiat-to-crypto needs and vice versa.