BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
SUBSCRIBE
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result
Home Crypto

Crypto Loans in Latin America Amid Inflation

BlockNews Team by BlockNews Team
October 5, 2022
in Crypto, Finance, Media
Reading Time: 3 mins read
A A
Loan-Bag
1
SHARES
11
VIEWS
Share on TwitterShare on Reddit

Economic instability and the traditional banking system make it hard for people in Latin America to get credit. However, cryptocurrency lending is flourishing across the region.

You might also like

Around The Block – MAR 24 Week in News

Web3 Needs its ‘WordPress Moment’ to Speed up Positive Disruption

UK to Mandate Declaration of Crypto Holdings in Tax Forms

In an era of highly high-interest rates and constant inflation, it is not easy for Latin Americans to borrow money from traditional banks. Some people are now considering cryptocurrencies for credit.

🏡 CRYPTO-BACKED HOME LOANS ARE HERE 🏡

Are you in the market for buying a property in Australia? 🇦🇺🦘

You can now use your crypto as collateral, using as little as 20% of the property's value, at rates comparable to banks! 🔥#homeloans #bitcoin #realestate pic.twitter.com/r4tibybUyC

— B4REAL (@B4Real_Official) October 5, 2022
Via @B4Real_Official – Twitter

The 2020 pandemic triggered various forms of inflation. Central banks in Latin America prominent were the first to raise interest rates. This is increasing in 2021 and 2022. Traditional bank lending rates rose exponentially. This is a catalyst for the growth of crypto platforms offering up to 50% lower interest rates and maintenance costs.

Crypto Lending Platforms

Ledn is a Canada-based lending platform with over 125,000 users. It launched operations in Latin America in 2019. The region now accounts for 50% of the company’s lending.

 Mauricio Di Bartolomeo, Ledn’s co-founder and chief strategy officer, told CoinDesk.

“As the adoption of cryptocurrencies grew in Latin America, we noticed that people had to sell their bitcoins to spend on their daily lives…That was when we saw credit could help people grow their businesses or projects without selling their crypto.”

Ledn offers loans in USD and the USD Coin (USDC) with an annual interest rate of 7.9%. If you receive a USD or USDC loan, your BTC collateral must match the loan. According to Di Bartolomeo, the company has provided $500 million in loans in Latin America. The average Bitcoin-backed loan amount is $9,206.

In July, Latin American cryptocurrency exchange Buenbit launched a crypto exchange pegged to the Argentine Peso (ARS). Crypto operates on the Binance blockchain. It requires collateral in the USD-pegged stablecoin DAI. I started offering cryptocurrency lending in Argentina via stablecoin Nuars.

The amount borrowed from Nuars has increased by 70%. Buenbit financial manager Manuel Calderon said the credit limit was increased from ARS 1 million (equivalent to $3,703) to ARS 5 million ($18,518) in September in line with user demand.

Collateral on the Amount of Crypto Loans Borrowed

The required collateral depends on the amount borrowed. The collateral can be as high as 90%. The annual interest rate is around 69.5%. It can change depending on market fluctuations. According to data from leading institutions surveyed by CoinDesk, traditional banks in Argentina can have lending rates of over 200% per year.

About 30 loans are opened daily. Twenty-five is closed on Buenbit’s platform every day. According to Calderon,

“Users range from small businesses who want to get NuAR for 5 million to buy a machine to people who can only get 3,000 pesos (US$11) for a small expense like a meal at a restaurant. It varies.” 

In August, Num Finance (NuPEN) started offering loans in NuARS and NuPEN. This was on its platform in Argentina and Perú. According to Num Finance’s CEO, more than $250,000 were lent over the last month.

Num Finance loans can be 100% collateralized in Bitcoin, Ether, or DAI. The interest rate varies depending on the base interest rate of each country. In Argentina, the NuARS rate is 59%, while the NuPEN rate has risen to 6%.

Tags: cryptocrypto loansinflation
TweetShareShare

Recommended For You

Around The Block – MAR 24 Week in News

by BlockNews Team
March 24, 2023
0
Around the Block

Introduction In this recap of the crypto world, we will explore the events and news that had the most significant impact in the past week of March 20th....

Read more

Web3 Needs its ‘WordPress Moment’ to Speed up Positive Disruption

by BlockNews Team
March 24, 2023
0
quicknode

QuickNode is leading the charge as Web3 is poised to revolutionize the world, but it needs its "WordPress moment" to accelerate positive disruption. Blockchain technology can upend manual-intensive...

Read more

UK to Mandate Declaration of Crypto Holdings in Tax Forms

by BlockNews Team
March 24, 2023
0
parliment

The government hopes to close regulatory gaps and stop illegal operations by enacting rules that address various parts of the industry. The requirement to disclose cryptocurrency holdings in...

Read more

The Fed Increases Interest Rates By 25 Basis Points- Impact On Crypto Prices

by BlockNews Team
March 24, 2023
0
The Fed Increases Interest Rates By 25 Basis Points- Impact On Crypto Prices

Crypto prices display rapid fluctuations as the U.S. Federal Reserve hikes interest rates by 0.25%. Investors remain upbeat about the medium-term outlook of Bitcoin and the wider crypto...

Read more

Telegram Enables USDT Stablecoin Payments on the Tron Network

by BlockNews Team
March 24, 2023
0
Telegram

Telegram integrates USDT-TRON (TRC20) into its platform, allowing users to send the stablecoin to their contacts seamlessly and without transaction fees. Telegram's venture into cryptocurrencies began with the...

Read more
Next Post
Coinbase-Logo

Coinbase Announces The Release of a Documentary

Related News

hong kong tokenized bond

Hong Kong issues 800M HKD in Tokenized Green Bonds

February 18, 2023
epic games building

Epic Games Reports that Blockchain Games are Doing Well on Their Platform

March 15, 2023
Candy-Digital-Logo

Billion Dollar NFT Platform, Candy Digital Lays of One-Third of Employees Amidst Market Winter

December 1, 2022

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Around The Block – MAR 24 Week in News March 24, 2023
  • Web3 Needs its ‘WordPress Moment’ to Speed up Positive Disruption March 24, 2023
  • UK to Mandate Declaration of Crypto Holdings in Tax Forms March 24, 2023

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?