El Salvador wants to continue its efforts to integrate bitcoin (BTC) into the habits of the population. For this, the government has considered creating a BTC-backed loan product for small and micro businesses. This project could encourage more people to adopt cryptocurrency.
A project to help small businesses
No concrete details have yet been provided, but it is known that the Salvador will offer its citizens loans in BTC. Mónica Taher, Director of International, Technological and Economic Affairs of the Government of El Salvador, had a virtual working session with journalists on the theme “Bitcoin loans at low interest rates”. During this meeting, she gave some interesting details.
Ms Taher further told Cointelegraph that loans will allow people to access digital currency. “Small bitcoin loans will allow people unfamiliar with banks to access digital currency while helping them build a credit history. El Salvador’s economy will grow stronger by empowering its small businesses.”
The project is interesting, even if we don’t know much about it yet. According to Paul Steiner, the president of the National Institute of Small and Microenterprises, the implementation of the project will be done through the El Chivo portfolio created by the government. “El Salvador has approximately 1.2 million businesses in the country. About 66% of them are micro or “subsistence” enterprises, he explains. More than 90% of microenterprises are self-financed by informal loans or loan sharks”. It is on the basis of these statistics that he thinks the project will be successful.
A project for small businesses
It is true that the new El Salvador project seems to have all the ingredients for a very rapid implementation. However, we must not forget that it still largely depends on the future of BTC. On this subject, Mr. Steiner is formal. According to him, cryptocurrency has a bright future. It can therefore serve as a support for improve the business environment for small and medium enterprises.
When will the El Salvador project be launched? The government has not provided any information on this subject. When Monica Taher was asked about the subject, she claimed that the loan product will only be available for small and micro businesses for the time being. “We’ll talk about mortgages later,” she added.
In El Salvador, small and medium-sized businesses will have the opportunity to benefit from a chance to grow through bitcoin (BTC) loans. For this project, the government is implementing all possible techniques. The goal is to support the economic development of the country.
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