El Salvador plans to provide low-interest Bitcoin-backed loans to SME

El Salvador plans to provide low-interest Bitcoin-backed loans to SME

Nayib Bukele, dubbed the “CEO of El Salvador,” is pushing the envelope by implementing Bitcoin as a legal tender in the real world. The Salvadoran government is attempting to develop a Bitcoin-backed credit product for micro and small companies around the country.
As a result, small and micro-businesses will be able to qualify for low-interest loans secured by Bitcoin in the near future (BTC).
 

El Salvador is considering making Bitcoin-backed loans Available

During a recent Facebook Live Audio discussion titled “Bitcoin loans with lower interest rates,” Monica Taher, an advisor for the government of El Salvador, stated that the next step in El Salvador’s Bitcoin agenda was to use the benchmark cryptocurrency to provide low-interest loans to small and micro-businesses.
The government advisor, Mónica Taher said:
“The Bitcoin small loans will provide access to digital money for the unbanked while helping them create a credit history. El Salvador’s economy will strengthen by empowering its small businesses.”
The execution of loans, according to Paul Steiner, president of CONAMYPE (the national institute for small and micro-businesses), will function with the government-created El Chivo wallet. El Chivo, the official Bitcoin and USD wallet of the Government of El Salvador, has seen a rapid increase in use.
In less than four months since its inception, it has amassed more over 60 percent of the country’s total population. 4 million people out of a population of 6.5 million (including persons under the age of 18 who are ineligible to use the wallet) are already using it.
El Salvador’s business landscape is dominated by small and micro-businesses, and Bitcoin-backed loans offer a chance to change that. Steiner demonstrated:
“El Salvador has roughly 1.2 million businesses in the country. Roughly 66% are micro-businesses or ‘subsistence’ businesses. Over 90% of micro-businesses are self-funded via informal loans or loan sharks.”
As an example, Steiner says that it was common for loan sharks and informal lenders to demand up to $15 in daily interest for a $100 loan that was to be repaid in 20 days. These entrepreneurs’ life would be considerably improved by Bitcoin-backed low-interest loans, which would serve as “an entry point for financing.”
 

Are Bitcoin-Backed Loans Great Solution?

Andrea Mara Gómez, project manager for Acumen, a decentralized finance (DeFi) lending system, stated that “some crypto enthusiasts in El Salvador are already using crypto solutions such as DeFi because they offer ease of use and a higher interest rate than banks.”
Alessandro Cecere, one of Ledn’s Community Managers, was also present during the discussion about BTC loans. Ledn pioneered BTC-guaranteed mortgages. His query, though, was if El Salvador would follow their pattern and use Bitcoin as mortgage security in the future.
According to the report, Steiner was open to discussion and optimistic about the future of Bitcoin and the cryptocurrency business. His primary goal is to improve the business environment for small and medium-sized businesses (SMEs).
El Salvador’s president, Nayib Bukele, has predicted that at least two more countries will embrace Bitcoin as legal tender this year, and he may be striving to see this prediction come true. He recently announced that he would be meeting with Turkey’s President, Recep Tayyip Erdogan. Turkey has expressed interest in adopting Bitcoin in order to help the country overcome its enormous present inflation. Erdogan recently announced that a measure to regulate cryptocurrencies was on its way to the country’s legislature. The law aims to change the country’s present crypto legislation and pave the way for Bitcoin adoption.

Twitter launches verified NFT profile picture feature

Twitter launches verified NFT profile picture feature

Social media giant Twitter has enabled a feature that lets users officially verify NFTs used for their profile pictures. Previously, anyone could simply right-click and copy an image, and there was no proof of ownership without digging into the Ethereum blockchain to check it.
The feature, which was rolled out on Jan. 20, is only available to paid subscribers of Twitter’s Blue service. Official NFTs will be highlighted by a hexagonal border instead of the traditional circular one used for profile pictures.
The move marks the firm’s biggest push into the NFT space to date. Twitter has become the social media platform of choice for the crypto industry over the past few years.
There are ways around it for wily hackers to copy the image, mint an NFT of it with a blockchain address, and upload it to their profiles. Twitter has yet to confirm how it intends to combat any digital thievery that may occur.

Twitter’s NFT Push
Company product lead, Esther Crawford, said Twitter is “positioning itself as the social network for the discovery, conversation, and education around NFT, blockchain, and crypto technology,” according to the WSJ.
“Crypto is a key pillar of Twitter’s future. We want to support this growing interest among creators to use decentralized apps to manage virtual goods and currencies,”
Twitter uses a third-party API (application programming interface) to grab a user’s NFT from the OpenSea marketplace, which acts as the verification. If OpenSea has any issues, then Twitter may not be able to verify the images and tokens.
Competition in the NFT space is heating up, and social media companies want to be at the forefront. Meta is also reportedly working on plans to allow users to create and sell NFTs on its own Facebook and Instagram marketplace.
In November, Twitter announced that it was launching a new division to focus on NFTs, crypto, dapps, and blockchain technology.
NFT Ecosystem Outlook
The NFT ecosystem saw explosive growth in 2021, which has continued into this year. According to Nonfungible.com, there has been $517 million in NFT sales over the past week. It reported that 277,509 NFTs have been sold on primary and secondary markets.
Collection tracker CryptoSlam is reporting that the most popular NFT collection over the past week is Meebits, with a whopping $1.9 billion in secondary sales trade volume.

Shecoin Launch

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Launching a trading coin on MCB Platform, this coin will be traded on Etherium Platform.

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