El Salvador To Begin Offering Bitcoin-Backed Loans for Businesses
While there are many Bitcoin maximalists and enthusiasts, they all fall short of one particular person who has done the most to make the most of the king coin. Nayib Bukele, who dubbed himself as the ‘CEO of El Salvador’ is pushing the boundaries and making real-world implementations of the digital currency.
Bitcoin Powered Loans
The Bitcoin enthusiast government is looking into more ways to leverage the use of digital currency to support their nation’s growth.
A Facebook live discussion held yesterday titled ‘Bitcoin loans with lower interest rates, had Monica Taher, the head of Technological & Economic International Affairs at the Government of El Salvador as its guest but she did not disclose much about the loans yet.
But one thing that did come forward is that these loans are going to be implemented using the El Chivo wallet. The official Bitcoin and Dollar wallet of the Government of El Salvador, El Chivo has witnessed a skyrocketing rate of adoption.
In less than 4 months since its creation, it has managed to amass more than 60% of the entire population of the country. Out of a population of 6.5 million people (including people under 18 who are ineligible to use the wallet), 4 million people are already using it.
4 million users!
*Total population: 6.5 million (including people under 18 that are still not allowed to use the app).
— Nayib Bukele 🇸🇻 (@nayibbukele) January 19, 2022
Thus developments such as the Bitcoin-backed loans will only further them in their attempt at establishing a Bitcoin-based economy after the announcement of the Bitcoin City.
Announced about 2 months ago, the Bitcoin city powered by geothermal energy from a volcano and financed by Bitcoin-backed bonds was painted as a Bitcoin haven. The city promises 0% taxes across income, capital gains, property, payroll, municipal and CO2 emissions.
So it becomes apparent that all the steps being taken are to ensure that the king coin becomes the currency of the future.
But can the currency itself attract investors?
Well, that can’t be ascertained since the market conditions haven’t been the most favorable for BTC. Apart from the 37% price drop in 2 months, the coin is also stuck in a sideways momentum for almost a fortnight.
While hopes of a recovery persist, it’ll be a while before it happens and investors enter the market.