What is Fiat? Understand The Fiat Gateway

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By Tokenize Xchange
December 12, 2022

With the remarkable improvement of Blockchain technology, cryptocurrencies have developed in tandem with traditional finance. Along with that, the circulation of money is more diverse than that of fiat currencies. 

So what does fiat mean? Can cryptocurrencies replace fiat when the blockchain context is being widely applied around the world? This article, Tokenize Xchange – Blockchain Trading Platform will help you answer the question What is fiat? And how fiat is important to the crypto gateway. 

what is fiat gateway

What is Fiat?

The term FIAT is derived from the Latin Expression of affirmation so let it be, or so it be, used in the sense of an order or decree.

In a nutshell, Fiat means the currency issued by the government which is not based on the characteristics of any physical goods. The nature of Fiat money has no intrinsic value, but it is assigned value by the power of the government:

Most countries worldwide use fiat money to buy and sell goods and services, for savings or investments. Some examples of fiats: the Euro (EUR), the U.S dollar (USD), or the Singapore dollar (SGD).

Though used around the world, fiat still has its pros and cons. 


  • Low Costs: It takes less than the government to issue fiat money compared to commodity-based currency issuance.
  • Scarcity: Fiat money is neither affected nor dependent on the scarcity of valuable material (gold, …) or other goods.
  • Flexibility: Because it depends on the power of the Government, the fiat currency will be flexible in printing money from the Government or the central bank to ensure supply and demand and to overcome and prevent economic crises
  • Convenience: Fiat money circulates without custodians, storage, or costly storage requirements like gold.
  • Scope of transaction: Fiat money can be exchanged from one country to another across the globe and is widely used.


  • Inflation risk: Fiat money has many potential risks of increasing inflation because it has no intrinsic value and an economic crisis will occur if the Government does not have appropriate monetary management solutions.
  • Past collapse: In the context of increasing inflation, printing more money has caused the economy to plunge like in history. Take for example hyperinflation (over 90%) in Zimbabwe in 2009. This raises concerns that may occur in the future.

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Fiat vs Cryptocurrency: How are they different from each other?

Basically, cryptocurrencies can be considered money as they permit transactions between two parties and serve as a store of value. However, they also provide benefits that the current traditional financial system is unable to provide, such as the ability for anyone, anywhere, at any time to send and receive money without the aid of a bank or a government. 

Fiat money also essentially represents debt. A central bank concurrently issues you, the consumer, a portion of your country’s debt when it issues banknotes. 

So, to sum up, the main difference between fiat currency and cryptocurrency is that cryptocurrencies don’t require government backing, while fiat currencies depend on it.

Most cryptocurrencies are created based on Blockchain Technology, which enables them to circulate without the need for a central authority such as the Federal Reserve.

Many proponents of cryptocurrencies argue this “decentralization,” in which currencies are governed by users instead of central authorities, will result in more efficient and less corrupt monetary systems.

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Understand Fiat Crypto Gateway

Simply put, a “gateway” is a link that joins two realms or spheres. Therefore, a crypto-fiat-gateway would be a preferable name for a fiat gateway that connects the fiat and cryptocurrency worlds. It enables the conversion of fiat money into cryptocurrencies and vice versa.

The fiat gateway serves as newcomers’ doorway into the cryptocurrency space. You must use fiat to purchase cryptocurrency through a fiat gateway if you have never purchased cryptocurrency before. Many crypto exchanges do have fiat gateways, but not all of them (others only allow the deposit of crypto funds like BTC or ETH).

Exchanges typically charge a fee for providing the fiat gateway, most frequently a portion of the funds exchanged. Depending on the exchange, the (fiat) currency, and the deposit method chosen, the exchange charge may vary.

How to buy Crypto with Fiat?

If you are still wondering how fiat can become a gateway to crypto, keep reading! 

Below are 3 methods to help you to buy crypto with a fiat gateway on Tokenize Xchange: StraisX, Debit/Credit Card, and Grab Pay. 

1. StraitsX 

The first method to buy crypto with fiat on Tokenize Xchange is using StraitX. 

If you have not used StraitsX in the past or do not have any bank accounts linked, that is fine. To link your bank account do enter your bank account details and verify the account by depositing a small sum by following the steps below.

Step 1: Click on Wallet, select Fiat and Spot, then click on the Deposit button.  

Step 2: Select StraitsX for the deposit method.


If it’s the first time you deposit, the dashboard will show the information requested to connect your StraitsX account to Tokenize Xchange. Please input your mobile number used in the registration of your Tokenize Account. Do note that users are no longer required to go into the StraitsX platform separately to open an account.

Key in your registered mobile number and receive your OTP.  Key in the received OTP then click on ” Submit OTP “.

Kindly input the information below to link your bank account ( account number, account holder, bank ) then click on ” link bank account “.

  • Once confirmed, your bank account will be linked to Tokenize Xchange and the account number will be reflected below the page.  

Step 3: Making a FAST Transfer 


  • Click on the Request Deposit button for bank transfer details. Each user is assigned a unique virtual account number to which they should make the transfer.
  • IMPORTANT: Take note of transfer type – FAST, Comment to Payee – Registered mobile number with Tokenize Xchange, and receiving bank account name and number – 17 digits unique bank account number. If any of these details are not detected by the system, it may result in errors.


  • A maximum of SGD 20,000 is to send for each transaction, the deposit will be rejected if more than SGD 20,000 is sent.
  • Your bank account has been added to Tokenize Xchange as an SGD funding source.
  • Select only FAST transfer for your account to be credited instantly.
  • Failure to follow the steps above may cause more time to complete and lead to delay.
  • It takes minutes for the transfer to be credited to your StraitsX account. A notification will be sent to your email address upon completion.
  • Once the transfer is done, your wallet balance on Tokenize Xchange will be updated with the amount of your transfer.
  • Please note: FAST transfers sent from newly linked bank accounts may take up to 72 hours to get credited as it is mandatory to conduct verifications.

In the event that you have made an incorrect transfer, please do not hesitate to contact us at info@tokenize.exchange or help@xfers.com. 

2. Credit/Debit Card

Please key in the credit card information and click on “Pay $XXX SGD” once completed. You are required to authenticate and approve by your assigned bank. 


Fiat deposit history will be able to view from Fiat Deposit History when you scroll down. 

3. Grab Pay

Step 1: Select Grab Pay and key in the amount you wish to deposit and click on “Continue” once completed.

* The fee is 1.5% for each transaction via Grab Pay

Step 2: You are required to authenticate by entering your mobile number.

Step 3: An SMS with Grab Activation Code (GAC) will be sent to the entered mobile number. Enter GAC to proceed with the payment.

Step 4: Once the SMS is verified, the payment information page will be reflected and select Pay to complete the payment.

Step 5: When the Grab payment is successful, the page with the Payment ID will be shown below.


Now we believe that you have understood what is fiat and the term fiat-crypto gateway! Don’t forget to follow Tokenize Xchange – Singapore Crypto Trading Platform for more informative articles!


Cryptocurrencies are subjected to high market risk and volatility despite high growth potential. Users are strongly advised to do their research and invest at their own risk.