bitcoinBTC/USD
$ 37,853.42
ethereumETH/USD
$ 2,764.82
tetherUSDT/USD
$ 1.00
cardanoADA/USD
$ 0.77128
xrpXRP/USD
$ 0.596295
usd-coinUSDC/USD
$ 0.999999
terra-lunaLUNA/USD
$ 79.79

El Salvador Seeks Low-Interest Loans Subsidized by Bitcoin

El Salvador Might Offer Bitcoin-backed Loans to its Citizens

The Salvadoran government is considering Bitcoin-backed loans for small and medium-sized enterprises. The adoption of Bitcoin in El Salvador is moving forward rapidly. As a result, small and micro-businesses will soon be able to apply for low-interest loans secured by Bitcoin (BTC).

Relating to this topic, the specifics of this new progress are still under wraps. However, El Salvadoran government adviser, Mónica Taher, was open and honest in a Facebook Live Audio the day before. The main topic of the conversation was the option of Bitcoin loans with lower interest rates.

On the other hand, the President of Conamype, a national institute for small and micro-businesses, revealed significant insights about applying for loans. He added that the implementation of loans is compatible with the El Chivo wallet created by the government. Currently, small and micro-sized enterprises (SMEs) dominate El Salvador’s commercial scene. In regards, Bitcoin-backed loans provide the potential to solve this condition. 

Steiner notes that, in El Salvador, there are around 1.2 million enterprises. According to a recent survey, 66% of firms fall into micro-businesses. Following more details, more than 90% of micro-businesses rely on informal loans or loan sharks to fund their operations.

To demonstrate, Steiner dives into a more detailed case. He notes the interest rate on a $100 loan to a microbusiness might be as high as $15 each day. Accordingly, the loan usually is due in 20 days. As a result, the yearly percentage rate on these loans exceeds 10,000 percent in certain situations. In the final analysis, loans backed by BTC will have lower interest rates than those offered by informal lenders, loan sharks, and banks.

Why Would Bitcoin-Secured Loans Be a Great Solution? 

When it comes to DeFi’s simplicity of use and greater interest rates than banks, people are taking advantage of this quality. In light of this, the project manager Andrea Martia Gomez raises attention to crypto admirers. She notes that crypto enthusiasts in El Salvador are already embracing crypto solutions such as DeFi. 

Furthermore, one of Ledn’s Community Managers, Alessandro Cecere, was present in the discussion about BTC loans. During this conversation, Ledn introduced mortgages guaranteed by BTC. However, his question was if El Salvador may follow their lead and use Bitcoin as security for mortgages in the future.

According to the report, Steiner was receptive to the debate and hopeful about the future of Bitcoin and the cryptocurrency market. His first aim is to enhance the business environment for small and medium-sized enterprises (SMEs). Among other things, basic questions such as whether the loan product will be accessible for other routes like homes came up. In response to this, Mónica Taher emphasized that they are thinking of offering this exclusively to small and micro-enterprises for the time being. However, she stated that they will also discuss the mortgages later. 

Indicating the challenges that micro-businesses face in El Salvador, Steiner came up with a conclusion. He concludes that businesses need a point of entry into the finance market, and Bitcoin provides that chance. 

Also read: 

Dogecoin Price Surges Following Elon Musk’s Tweet

El Salvador President Makes Major BTC Forecasts for 2022

Dogecoin Community Calls on McDonald’s To Accept DOGE

Gensler Says SEC 2022 Agenda Will Include Regulating Crypto Exchanges

Also read:

Related News

A revealing finding of legal documents could shed more light on what caused the dramatic Terra (LUNA) and TerraUSD (UST) price collapse.

Suspicions Rise as Documents Surface Showing that Do Kwon dissolved Terraform Labs Korea days prior to the collapse of LUNA

A revealing finding of legal documents could shed more light on what caused the dramatic Terra (LUNA) and TerraUSD (UST) price collapse. Legal documents disclose the dissolution of two South Korean branches and the liquidation of the Terraform Labs Korea firm in the days leading up to the cryptocurrency collapse, which has been dubbed the “Lehman Brothers of crypto” by a number of people. According to information collected from the

Read More »
Preston Van Loon, an Ethereum (ETH) core developer, said at a discussion at the Permissionless conference that The Merge might happen in August of 2022.

Ethereum 2.0 to be Completed in August Says Vitalik Buterin

The Merge will be finalized in August, according to Vitalik Buterin and several key Ethereum developers A most coveted event in the 7-year existence of Ethereum (ETH), according to the project’s co-founder, Vitalik Buterin, and several key Ethereum (ETH) developers, might happen in the coming months. This must execute before the network is slowed by the difficulty bomb process.  Preston Van Loon, an Ethereum (ETH) core developer, said at a

Read More »
The native currency of Revolut will not be a stablecoin but it does have an aim to make loyalty tradeable, said the CEO.

Revolut CEO Says Future Native Token to Reward Loyalty of Users

CEO Nik Storonsky revealed in an interview that Revolut’s proposed native cryptocurrency will attempt to award clients for their loyalty, as well as specifics on the upcoming non-custodial wallet of the neobank. At the Finance FWD conference in Hamburg Storonsky said that the long-rumored currency, supposedly called “Revcoin”  will work similarly to airline Air Miles programs, wherein users receive benefits according to how frequently they use the services provided. The

Read More »

My Coins

bitcoinBitcoin
$ 37,853.421.33%
ethereumEthereum
$ 2,764.821%
cardanoCardano
$ 0.771281.68%
tetherTether
$ 1.000%
terra-lunaTerra
$ 79.791.45%

Newest Videos on YouTube

We inform and educate people about Cryptocurrencies and Blockchain technology.

© Copyright 2021, All Rights Reserved,
Crypto Academy

Bitcoin

Contact Us

For any question conatct us through:

sales@crypto-academy.org

Disclaimer: All information and materials on this website are for educational purposes only. Crypto-academy.org does not provide any form of financial advice. Cryptocurrencies are highly volatile, therefore any form of investing carries a high level of risk to your capital. It is recommended that you seek professional advice prior to implementing any investment or financial plan.

We do not ask you for your Cryptocurrency / We do not hold your Coins / We do not ask for Private Keys / Be aware of scammers and imposters.

Contact us only through: sales@crypto-academy.org