Bitcoin is increasingly gaining a place in the economy of El Salvador. The Central American country is now considering providing Bitcoin -backed loans with low interest to small and micro business companies as one of the next steps in promoting the Bitcoin agenda. The scheme will meet the needs of small business owners to obtain affordable financing for their enterprises.
In a conversation on Facebook Live Audio held recently titled “Bitcoin loans with lower interest rates,” Monica Taher, an adviser to the government of El Salvador, noted that the next thing on El Salvador’s Bitcoin agenda is to use the cryptocurrency as a benchmark to provide low -interest loans to small and micro businesses.
Although details of how the scheme will work were not disclosed, however how the move would work has been explained in depth.
According to Paul Steiner, president of El Salvador’s National Institute for Small and Micro Business (CONAMYPL), there is an urgent need for low -interest loans in the country. He noted that the majority of the country’s business operations are small and micro -scale, and they have been plagued by loans with unfair interest rates.
Steiner said, “El Salvador has about 1.2 million businesses in the country, About 66% are micro businesses or“ small ”businesses. More than 90% of micro businesses are self -financed through informal loans or lenders. ”
El Salvador President Nayib Bukele, who has predicted that at least two more countries will adopt Bitcoin as a legal tender this year. He recently revealed that he will meet with Turkish president Recep Tayyip Erdogan. Turkey has shown interest in using Bitcoin to help their country out of the current massive inflation.
Erdogan recently revealed that a bill to regulate crypto assets is being debated in the country's parliament. The bill intends to overhaul the country’s current crypto policy and open the door to the use of Bitcoin.
In the meantime, Bukele’s influence has been made as in Tonga’s plan to allow Bitcoin to be used as a legitimate tender. Former Tongan MP Lord Fusitu’a recently claimed that the government’s Bitcoin bill would soon be passed to make Bitcoin a legal tender.
