Why Bitcoin And Other Crypto Off-Ramp is important?

Last modified on October 4, 2023

Bitcoin adoption has been on a steady rise, with the number of users on major exchanges and wallets increasing significantly. In the next phase of Bitcoin’s growth, we see offramping, also known as crypto off-ramp, as the most important problem to be solved.

Bitcoin Acceptance and the Role of Crypto Off-Ramp

While the number of businesses that accept Bitcoin is growing, it’s still not a universally accepted form of payment. This is where offramping solutions step in to help.

‘Crypt off-ramp or bitcoin off-ramp’ is the process of converting your Bitcoin or any other crypto back into fiat currency. It’s a crucial aspect of the Bitcoin ecosystem because it allows users to utilise their Bitcoin in places where it’s not accepted in exchange for goods and services, yet.

For instance, if you own Bitcoin and want to purchase goods or services from a business that doesn’t accept Bitcoin, you can use an offramp service to convert your Bitcoin into a currency that the business does accept. Or the business can choose to accept Bitcoin and get it immediately converted to Euros.

This can make Bitcoin and other crypto more usable in everyday life and can help drive its adoption by making it easier for users to spend their Bitcoin and for businesses to accept it.

Dedicated Offramping Services for Bitcoin

Having services dedicated to Bitcoin can be extremely beneficial for users.

First, it allows the offramp service provider to focus solely on optimising the offramping process for Bitcoin, without the distraction of other cryptocurrencies. This could lead to a more efficient, secure and reliable service.

Secondly, a dedicated service can help foster trust among its users. When a service specialises in Bitcoin, users may feel more confident in using it because they know that the service understands the specific nuances and challenges associated with Bitcoin.

Lastly, the service can focus on integrating all the recent upgrades in the Bitcoin network like Taproot transactions and Lightning transfers or upcoming upgrades like miniscript support for on-chain transactions and Bolt12 and PTLC’s for Lightning transactions.

User Experience in Offramping

User experience (UX) is another critical factor in offramping. A smooth and straightforward UX can make the offramping process less intimidating for those who are new to Bitcoin. This includes having a simple user interface (UI) that’s easy to navigate and providing clear instructions on how to convert Bitcoin into fiat currencies. The user experience and interface on existing exchanges can often be complex and intimidating for new users.

When navigating Bitcoin exchanges, users will need to understand the difference between spot and derivative markets, limit and market orders, leverage, rehypothecation, and third-party risks. There are so many distractions that onboarding new users to Bitcoin can be quite challenging.

Building the best offramping product for Bitcoin

Considering these challenges, we’ve designed our product to be user-friendly, simple and secure.

We’re working on making the process of offramping streamlined and intuitive, making it hassle-free for both businesses and individual users. You can take a look at our UI and play around with it here.

The crucial aspect that we wanted to focus on was safety for our users. Our app creates a dedicated IBAN for each user that creates an account on it. This IBAN account is linked to the user’s Bringin account, which is where you can deposit Bitcoin.

There is a dedicated page on Bringin that allows you to manage a list of beneficiaries which will receive the converted funds.

When you want to convert your Bitcoin to Euros, you simply send them to a Bitcoin address generated on your Bringin account, after which funds will be instantly converted at the best market rate obtained from order books of exchanges. The converted funds will be deposited to your dedicated IBAN account first, after which the user will have to generate an OTP. Once the OTP is entered, the transfer can be initiated and the funds will be transferred immediately to the beneficiary IBAN account.

Why is this a big deal?

Exchanges use third-party payout services for bank transfers. Financial institutes and regulators repeatedly ask these third-party payment providers to stop working with Exchanges for various reasons. This is the reason why exchanges pause SEPA withdrawals now and then. As a result, Banks tend to block payments from third-party payment providers working with exchanges due to be compliant.

With Mica coming into effect in 2024, the compliance around third-party payments working with Bitcoin companies to do payouts will be even stricter. We take a unique approach in providing IBAN accounts to each user and making the payments safe by design.

Offramping plays a vital role in Bitcoin’s adoption as a monetary instrument. By making it easier and safer for people to convert their Bitcoin into fiat, we want to bridge the gap between the Bitcoin ecosystem and the traditional monetary system.

If you are looking for the most reliable solution to easily liquidate, sell Bitcoin to instantly receive Euros into bank account, get access to you Bringin IBAN account today.