after crypto crash, The extreme volatility experienced in Argentina in the last 30 days put crypto wallets back at the center of the scene. The run against the peso gave them an extra push: in days of maximum uncertainty, many savers turned to these as a way to dollarize. And the different players responded with a battery of options: from loans in pesos to new plastics to pay for purchases in the “fiat world”.
In mid-July, the Argentine exchange Buenbit introduced its clients Flexible loans: they allow you to request loans for up to $1 million and only present the guarantee of your cryptocurrencies. In this way, Buenbit, one of the companies that was affected by the cryptocrash in the second quarter of the year, became the first exchange in the region to offer collateralized loans.
What does it mean? that a user can make money by asking for a loan in “crypto-pesos” called nuARS to consume, without parting with your crypto savings, while leaving collateral (i.e. collateral) in DAI; the stable cryptocurrency that maintains parity with the US dollar and is as recognized as the digital dollar.
When requesting the loan, the amount in DAI that remains as collateral is calculated and blocked until the total money borrowed is repaid. Everything happens within the app and in simple steps. In a dialogue with Clarín, Federico Ogue, CEO and founder of Buenbit, explained: “In this way, anyone who has crypto or crypto dollars can take out a loan in pesos at a very low rate.”
One of the most interesting points of the product is its ultra flexible form of cancellation: the user pays how and when he wants. There are no minimum return amounts. “It is an open loan, without installments, without minimums, without penalties. The loans are according to the guarantee, always less than the collateralized amount,” explained Ogue.
“This is a way to leverage without getting rid of savings, here you can access credit and continue to receive the interest generated by being invested in DAI,” added the executive. “We are seeing that people have dollars in the mattress, in the safe, without doing anything and they don’t want to sell them, and they prefer to leave it as collateral and have a cheap line of credit. The dollars remain and the person receives a loan in pesos,” he added.
According to Ogue, the destination of these loans is varied: from financing working capital for some SMEs or businesses to financing trips abroad in installments, as a result of the latest tightening of the exchange rate.
prepaid card
Meanwhile, the global exchange Binance redoubled its bet in the country and presented, in alliance with Mastercard, Binance Card, a prepaid card that can be loaded with pesos and that allows users to pay in physical stores and virtual stores using the balance of their crypto investments.
“Argentina is the first country in Latin America to have the product. The Binance Card is part of the company’s ongoing efforts to promote the global adoption of cryptocurrencies in a tangible way. The product is in beta and will be widely available in stores.” coming weeks,” the platform created by Changpeng Zhao explained in a statement.
“Payments are one of the first and most obvious use cases for cryptocurrencies, although their adoption has a lot of room to grow.” By using the Binance Card, merchants continue to receive fiat and users pay in the cryptocurrency of their choice.
“We believe that the Binance Card is an important step in fostering greater crypto usage and global adoption and is now available to users in Argentina,” said Maximiliano Hinz, Binance General Manager for Latin America.
SN
