Is it possible to use smart contracts to do money transfers? If so, how?

Question

I've recently gotten into blockchain and I was having trouble understanding smart contracts.

Is it possible to use smart contracts to do money transfers?

Something similar to Venmo I guess. when I researched online I could only find smart contracts that were using crypto currency but I was not able to find someone explaining how smart contracts could be used with fiat money.

Even if this is not possible, could you reference sources so I could further understand how and why it is possible or why it is not possible?

Thanks in advance!

Answer 1

It is not possible to make direct transfer of fiat money. The blockchain is self contained and it cannot interact with the outside world directly (It can do so with "Oracles").

There are "stable coins" like DAI, USDC, ... and many others that maintains a relationship 1:1 with fiat currencies. These tokens allows to make payments without interacting with a bank or similar entity. Some exchanges allows selling those tokens for fiat and withdrawing them to a bank account.