WeFi and the Real-World Limits of Stablecoin Remittances

Stablecoins have been a revelation for global finance, disrupting the status quo to introduce a cheaper, faster, and more transparent method for cross-border payments. The promise of a global, “always-on” system has been a breath of fresh air for the millions of people who rely on remittances to support their families back home.

Unfortunately, it’s not all smooth sailing. For recipients of stablecoins, the trouble resumes once they try to cash out. That’s because “off-ramping”, which serves as the final, real-world step for converting digital assets into spendable local currency, is fraught with friction.

There’s good news, however. A new generation of financial infrastructure is emerging. Stablecoins have solved half of the battle, but the rest of the remittance journey needs more firepower. That’s where WeFi comes in as a disruptive decentralized on-chain bank (or deobank for short) building the foundational rails that bridge the gap between digital potential and practical use. Let’s explore.

Why Stablecoins Are a Breakthrough, But Not a Full Solution

The advantages of stablecoin technology are undeniable. They are globally accessible, settle almost instantly, and boast low network fees. Regions with unstable local currencies, like Venezuela, Argentina, Lebanon, and Vietnam, have become some of the biggest global adopters of stablecoins. Countries with limited banking infrastructure have seen widespread adoption of stablecoins too, such as Nigeria (Africa’s biggest stablecoin market), Morocco (once the world’s most unbanked country by %), and the Philippines (where a regulated stablecoin was introduced this year).

Beyond infrastructure and instability, remittance fees are a key driver of stablecoins. This is best demonstrated by Tanzania, Kenya and Senegal, where fees have been known to exceed 50%. Tanzania is officially the most expensive country to remit money to, while at the best of times, the Senegalese pay around 17% to send money home. Kenyan remittance fees average ‌around 11%, which is still far too high to justify, especially considering it is such a remittance-heavy region.

Stablecoins have become a crucial finance lifeline, one that can bypass slow and exploitative money transfer services. However, the journey from on-chain to on-the-streets is not so obvious or straightforward. Once the stablecoin reaches the recipient, new frustrations emerge, further hindering a.doption of the technology.

Where Stablecoin Remittances Still Fall Short

Try to picture these frictions from the perspective of someone receiving critical funds from a family member working overseas.

• Off-Ramping Friction: Converting a stablecoin to a usable local currency is the biggest hurdle, as users typically face limited exchange options. When they do find an off-ramp, they are often met with high fees when they attempt to convert the cryptocurrencies to cash. In some extreme cases, the fees could even negate the cost savings from the initial transfer.

• Regulatory Complexity: Global compliance standards like KYC (Know Your Customer) and AML (Anti-Money Laundering) are often a necessary part of the process. However, in emerging markets, they’re poorly enforced or misunderstood, which can lead to complications when exploring ways to cash out.

• Poor User Experience: For non-technical users, finding their way around crypto wallets, making sense of gas fees, and protecting their private keys can be overwhelming. A stablecoin might be easy to send, but it’s far from intuitive or practical at the other end.

• Liquidity and Access Gaps: Remittance corridors often lack reliable online platforms for off-ramping. This can lead people to use unfamiliar platforms with limited fiat pairs and language barriers. Local unlicensed brokerage services may try to fill the gap, yet they also present trust and cost barriers for users.

At long last, however, solutions are emerging.

The Role of Decentralized On-chain Banks in Fixing the Gaps

Real-world challenges for cashing out crypto have proven that creating a better token isn’t enough. The promise of a stablecoin can only truly be realized when a complete financial layer is built around it.

That’s the central thesis of decentralized on-chain banks. They argue that a deobank is far more than just a wallet, exchange, or bank, rather, it’s a full-stack, crypto-native financial institution built on open and programmable systems. So, rather than replicating a traditional bank and its services, a deobank re-imagines everything for the modern, on-the-move, mobile-first user.

Leveraging their ambition, imagination, and vision, deobanks are building towards a seamless and integrated experience that solves the entire remittance journey, globally. From digital deposit to physical withdrawal, the hope is that decentralized on-chain banks can overcome the current problematic system with a compliant, liquid and user-friendly alternative. The goal is to have one holistic and cohesive system that works for all.

How WeFi Bridges the Gap Between Stablecoins and Daily Use

WeFi leads the pack, building deobank infrastructure that turns stablecoins’ potential into genuine functionality. The approach is to create a complete mobile-first ecosystem where sending and receiving money is as easy as texting.

To solve the remittance issue, WeFi is focusing on the “last mile” issues that other platforms ignore. For example:

• ATM and Point-of-Sale Access: WeFi users will be able to spend their stablecoin balances directly in the real world and withdraw money from ATMs.
• Simple Fiat Conversion: Simple cross-border off-ramps ensure that users can convert their stablecoins to local currency with minimal friction and competitive rates.

• Localized Experience: The platform will offer localized onboarding, multilingual support, and an ultra-user-centric design to make the platform as intuitive as possible.
• Transparent and Integrated Rewards: WeFi will deliver a fully transparent fee structure with integrated rewards, making it more cost-effective than legacy financial services.

All things considered, WeFi boasts the potential to turn stablecoins into the most practical and inclusive financial tool of the century.

Why Deobanks Are the Future of Global Payments

WeFi is not just another finance app. Deobank platforms are part of a wider movement to change the rules of global financial access. The age of exclusion is ending. In this new vision for the future of global payments, open, composable, and programmable systems will deliver the flexibility, transparency, and user control people truly deserve.

The future of remittances is under construction, but what’s clear is that this path diverts away from creating new tokens and pivots towards delivering full-stack infrastructure for absolute usability, universally. To realize the immense potential of stablecoins, a revolution is required.

Stablecoins Need Real-World Rails, and WeFi Builds Them

WeFi is testament to what’s possible when you zoom in on solving a particular problem, in this case, the systemic friction in global payments and remittances. Beyond just cost savings, the platform is building an infrastructure that can truly turn digital assets into everyday money, providing the final bridge that has until now, remained fairly elusive. As one of the few platforms bridging the usability gap, WeFi is innovating for a day when the best parts of blockchain technology are accessible to those who need them most.