El Salvador wants to provide a paperless loan, may adopt Defi Bitcoin loan service

El Salvador is challenging the whole world with its plan of Bitcoin loan to push the adoption of Bitcoin.

El Salvador is the first country in the world, which adopted Bitcoin as Currency officially on 7 September. However, the country faced huge criticism from the world bank and high-level US government agencies directly and indirectly but still, the country is trying to bring the best options for their citizens to have a better life with bitcoin. 

After a few weeks later official Bitcoin adoption by El Salvador, many experts and stakeholders did a meeting to provide Bitcoin-backed services to the citizens directly through the banks. Meeting and discussion on this matter noted that it will not only help bitcoin but also the whole Banking system. 

Now El Salvador is moving one step closer with their initial initiative of Bitcoin adoption. Reportedly El Salvador government officials are planning to give Bitcoin-backed loans. 

As per available details, the Bitcoin-backed loan will be offered for small businesses because the numbers of small businesses are many in El Salvador. However, nothing is fixed but reportedly small value loan repayment within 15 days will be interest-free. 

Mónica Taher, technological and economic international affairs director for the government of El Salvador, shared some details about this Bitcoin loan idea of the country with crypto news website Cointelegraph. 

Monica 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.” 

Right now few Defi crypto platforms are crypto-backed loans and interest solutions are already giving services in the country. Few reports claimed that El Salvador may go through a paperless system to give bitcoin-backed loans because the adoption of Bitcoin is an effort of the country to eliminate the traditional and laggy system. So there are chances that El Salvador may adopt Defi based system in the Chivo wallet platform to facilitate easy loans. 

In this situation, on one side US banks are giving no interest, on the other side Bitcoin is going to play a big role to give loans and high interest for the savings, as per available details, so obviously, people are going to have bitcoin in their Bitcoin balance beside bank balance.

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