Latin America is one of the regions on this planet where the financial situation grows more dire every day. This has attracted the attention of Bitcoin lending platforms, as they could make a huge impact on the market.
Bitcoin loans make a lot of sense for financially struggling regions. Anyone can get a Bitcoin loan – assuming they qualify – at a much cheaper rate than financial institutions can offer right now.
To make the service appealing to as many clients as possible, they use three different services. Cash advances, peer-to-peer personal or business loans and investment offers. This approach can thrive in Latin America, where financial inclusion is hard to come by. At the same time, Bitcoin is the only global currency in the world today.
Argentina is a promising market for Bitcoin lending companies. A report by Euromonitor goes to show a lot of clients take out short-term loans, for which Bitcoin fits perfectly. The reason for this trend is simple, residents want to avoid Argentine Peso inflation as well as the mandatory income tax.
While it makes sense for Argentines to take out a short-term loan, the jump to Bitcoin may appear a bit strange. At the same time, there are no other viable options available, other than dealing with loan sharks who charge outrageous fees. With only half of the population having access to a bank account, alternative finance can thrive in the Latin American country.
It will be interesting to see if other companies decide to explore the Latin American market for Bitcoin loans. Argentina is just one of the many economies that could use a financial boost, and Bitcoin is in a prime position to provide just that. Venezuela, Colombia, and even Mexico are other regions that are dealing with lots of financial turmoil right now.
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