In recent days on Bitfinex, there have been some problems related mainly to Tether and the management of fiat currencies, this caused a temporary suspension of withdrawals and deposits of fiat yesterday.
The well-known exchange announced today that it has activated a new improved fiat currency deposit system, based on a “distributed banking solution”.
The new process will allow KYC-verified users to deposit US dollars, pounds sterling, Japanese yen and euros, and will work as follows:
- a user who wishes to initiate a fiat deposit on Bitfinex will create a deposit request to signal their willingness to deposit fiat currency, specifying the exact amount and currency they wish to deposit.
- following verification of the account (which can take up to 48 hours), the user will receive a notification with the personalized bank details to carry out the transaction
- at which point the user can proceed with the sending of the fiat money using the data provided in the deposit notification
- the deposit will be processed within 6-10 working days from the time the money is sent.
The minimum amount of the fiat currency deposit on Bitfinex will remain at $10,000, with a commission of 0.1%.
The new system is certainly not one of the fastest in circulation, but it will serve to avoid problems like the ones they just experienced.
It also shows the limits of fiat currencies when it comes to moving significant figures, since transactions of this type, if carried out in USDT (Tether dollars) for example, take only a few minutes, and no special procedure is needed.
These new limitations will probably only induce more and more users to use stable coins instead of fiat money.