bitcoinBTC/USD
$ 19,690.45
ethereumETH/USD
$ 1,327.76
tetherUSDT/USD
$ 1.00
cardanoADA/USD
$ 0.429177
xrpXRP/USD
$ 0.461249
usd-coinUSDC/USD
$ 1.00
terra-lunaLUNC/USD
$ 0.00031

El Salvador Seeks Low-Interest Loans Subsidized by Bitcoin

Atis. Sh
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

Kim Kardashian Charged By SEC For Unlawfully Touting Crypto Security

The Securities and Exchange Commission has charged Kim Kardashian for promoting a crypto asset security sold and offered by EthereumMax on social media, resulting in a scam. This is without reporting the compensation she got for a promotion. In exchange for dropping the accusations, paying around $1.26 million in fines, forfeiture, and interest, going along with the investigations, the star of Keeping Up With The Kardashians, Kim, agreed to settle

Read More »
The action came after Binance's expansion in several nations in 2022, such as Dubai, France, Spain, and Italy, as the platform aims to expand its operations and boost global cryptocurrency usage.

Binance to Offer its Services to New Zealand

As per a blog post published on September 30, the biggest crypto exchange by trading volume, Binance, is now reportedly registered in New Zealand and opened a regional office there called Binance New Zealand as part of its effort for worldwide expansion. On September 10, Binance filed as a financial service provider with the Ministry of Business, Innovation, and Employment in New Zealand. This allowed the business to provide a

Read More »
With the new exchange-traded fund (ETF), European users will have access to the blockchain market. A metaverse-focused ETF may also be in the works, according to numerous sources.

BlackRock Introduces New ETF Targeting European Clients

Blackrock, the biggest asset manager in the world, has revealed the introduction of a fresh ETF. With the new exchange-traded fund (ETF), European users will have access to the blockchain market. A metaverse-focused ETF may also be in the works, according to numerous sources. The iShares Blockchain Technology UCITS ETF, a new Blackrock ETF, was introduced on September 27. Blackrock provided more information about the ETF, claiming that 75% of

Read More »

My Coins

bitcoinBitcoin
$ 19,690.453.2%
ethereumEthereum
$ 1,327.763.76%
tetherTether
$ 1.000.06%
usd-coinUSD Coin
$ 1.000.21%

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:

[email protected]

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: [email protected]