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Can somebody explain exactly how fiat can be used with OmiseGo?

I’ve been reading up on OmiseGo and everything about it seems great except I’m not understanding how fiat comes into play. Can somebody step by step walk through how a transaction with fiat would work? I don’t see how fiat can work in a decentralized system. If OmiseGo actually solves that problem that would be pretty incredible.
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