Uniswap has partnered with Moonpay to enable users to buy cryptocurrencies with credit and debit cards.
Experts believe that uniswap's growing reliance on centralized companies is driving the exchange away from Web3 applications.
Uniswap's recent moves hinder true crypto adoption by attempting to make its services more appealing in a decentralized manner.
Decentralized exchange will be able to buy cryptocurrencies directly from credit and debit cards on the cryptocurrency trading platform.
This partnership will also accept bank transfers. However, DEX customers in the United States, Brazil, the United Kingdom, and the Single Euro Payments Area will be the first to benefit from this option.
“Because of our partnership with Moonpay, you can now purchase crypto on the Uniswap Web App using a credit/debit card or bank transfer at the best rates in web3.”
As per the release, DEX users will be able to convert fiat currency into cryptocurrency on the following networks: Ethereum (ETH), Polygon (MATIC), Optimism (OP), and Artibrum.
Uniswap will support also the following assets in this new stage: Dai, Ethereum, USDC, and USDT. Wrapped Bitcoin (wBTC) and Wrapped Ether (wETH) will be supported in some regions.
Indeed, this could be an excellent incentive for more people to enter the cryptocurrency market.
According to Uniswap, decentralized exchanges are preferable to centralized ones. After all, a DEX includes user protection features such as self-custodial wallets, immutable protocols, and a public and transparent ledger.
However, Uniswap's increasing reliance on traditional payment methods and centralized companies provoke the exchange to drift further and further away from being a true Web3 application.
The DEX's policy update is a great example of this. It updated its terms in November 2022, stating that it will provide more transparency in data collection.
Under the new policy, some factors, such as on-chain and off-chain data linked to users' cryptocurrency wallets, will be collected by the DEX.
The decentralized exchange and third-party service providers may collect the following information: data relating to users' mobile device IDs, cookies, location storage information, operating system, and device or browser language.
“We may use the information we collect to comply with applicable laws and regulations as required or requested by regulators, government entities, and law enforcement.”
Uniswap believes that the lack of a good user experience has hampered the adoption of decentralized finance (DeFi). Despite the risks, cryptocurrency traders prefer to trade on a centralized platform.
However, Uniswap's recent moves end up harming true crypto adoption because, rather than attempting to make its services more appealing in a decentralized manner, it is betting on adoption through traditional centralized companies, which also have risks.
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