Metamask, the world's largest standalone hot (internet-connected) wallet with more than 22 million users, has added the ability for users to convert cryptocurrency to fiat money such as US dollars as more Web3 players look to create digital assets. . . suitable for use. In real life.
Wallets that allow users to fully control their digital assets and therefore be “self-sufficient” have become increasingly popular since the collapse of FTX exposed the shortcomings of centralized exchanges. The problem is that they have historically been difficult to navigate because they require a certain level of technical sophistication, but players like Metamask are working to make them more user-friendly.
The withdrawal feature initially only supports conversion of ETH, the world's second largest cryptocurrency, based on location. To get started, users select their country. They will then decide on the withdrawal amount, after which they will see a list of other additional providers, including MoonPay and Transact; the world likes to call the ramp process doing
From there, MoonPay will receive and send ETH to the user's designated bank account after calculating the exchange rate. Funds will be in the bank within minutes. Users can also opt out of PayPal, which is already a MetaMask partner , so you can use its internal processes.
Alternative options could help accelerate mass adoption of MetaMask, provided the solutions are simple and cheap enough for the average user. But costs can add up quickly.
First, users are responsible for the gas fees paid to network validators for conducting transactions on the underlying decentralized network. They may have to pay transaction fees to MoonPay or other cash providers. Let's see how fees are distributed according to the Metamask demo using MoonPay in the US:
- The user decides to withdraw 0.05 ETH.
- 0.00021 ETH goes back into gas
- Sold 0.0458 ETH
This means an additional transaction fee of 0.00399 ETH, which is about 8% of the total transaction volume. The costs are not small.
Of course, transaction fees will vary between users depending on the withdrawal partners available in their market. The feature is initially rolling out in the US, UK and select European countries “with plans to expand to more regions for our global community,” MetaMask said in a statement.
Metamask isn't just trying to make it easier for users to spend cryptocurrency. Gnosis, a blockchain network known for its low gas fees, recently launched a Visa card that allows users to spend cryptocurrency from their escrow wallets in Europe, with plans to expand the service to the US and Hong Kong.