Stablecoin Payments Glossary
Fiat Conversion
Fiat conversion is the process of exchanging stablecoins or other digital assets into sovereign currency, or vice versa.
Explanation
This conversion may occur at the point of payment, during merchant settlement, or through an on-off ramp provider. Exchange rates, fees, liquidity, and banking access influence the efficiency of conversion.
Why it matters
Fiat conversion is critical for merchants and users who operate between digital asset systems and local-currency economies.
Related terms