Coinbase offers Bitcoin Cash loans up to $ 20K
Coinbase, the digital currency exchange office, will offer bitcoin-backed cash loans to select customers starting next month, the San Francisco-based company ad on his blog this week.
Customers from 17 states have been invited to join the waiting list to borrow up to 30% of their bitcoin holdings. The maximum loan is $ 20,000 at 8 percent for one year without a credit check.
“With today’s announcement, we want to give our clients even more control over their crypto investments, while providing secure access to cash at the same time,” Thorsten jaeckel, product manager for Coinbase, wrote on the blog.
Coinbase said it launched the service in response to customers who said they needed money for expenses such as home renovations or car repairs, but would rather not sell their cryptocurrency prematurely or take out high interest loans. .
Initially, loans are available in the following states via the waiting list: Alaska, Arkansas, Connecticut, Florida, Georgia, Illinois, Massachusetts, New Hampshire, New Jersey, North Carolina, Oregon, Texas, Virginia, Nebraska, Utah , Wisconsin and Wyoming.
The exchange, which has more than 35 million users worldwide, said it was working to obtain licenses to add more cryptocurrencies and expand into jurisdictions.
Bitcoin.com reported Coinbase will compete with Nexo and Blockfi.
Additionally, the website reported that Square’s Cash App, a user-friendly payment platform, was testing short-term loans between $ 20 and $ 200 at a fixed interest rate of 5% per month.
Liberty Street Economics, a research blog on Federal Reserve Bank of New York, said in a Publish that the usual distinction between “token-based” and “account-based” cryptocurrencies is too simplistic because several popular digital coins, including bitcoin, could be both.
A token-based system, he says, means a system in which validation of the object used to pay is required, while an account-based system verifies the identity of the person paying.
Regular currency, according to the Post, is a traditional token-based system, in which people pay for goods or services and all they need is to know that the person has enough valid currency to make the transaction. payment.
In June, the New York State Department of Financial Services (DFS), which oversees 1,500 banks and financial institutions and more than 1,400 insurance companies, offers a conditional licensing framework that promises to make it easier for cryptocurrency startups.
According to the proposal, emerging companies participating in the program can apply for a conditional license from DFS if they partner with an existing business authorized by DFS to engage in virtual currency business activity.