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I wish there were fiat options to buy hive without the KYC

Yeah. Well fiat is likely to always have KYC. It is their realm so they are going to protect it.

We are likely going to have to use a vehicle currency like $BTC to get from Hive to fiat.

depending on a CEX is like depending on a bank or any other financial institution. They are all centralized so they own you and your money but you don’t own them