BlockPay will never touch fiat. That is up to the exchanges, banks, gateways and bridges to handle that job. OpenLedger already has a direct fiat exchange built-in as they put it right in their web wallet. Check out bitshares.openledger.info and from there just go to the deposit/withdraw screen.
Encouraging merchants and users to stay in crypto is a top goal. Earning crypto, spending crypto, etc. As we complete the economic circle of infrastructure (like BlockPay) and employers who accept and pay their workers in crypto, the reasons for using fiat are starting to disappear completely.
The more Smartcoin Exchanges that come online, the cheaper it will be to get into and out of fiat. If you know of existing crypto exchanges that would be open to Smartcoins too, please don't hesitate to bring them on board. It will benefit everyone in the long run :)