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El Salvador is exploring bitcoin-backed low-interest loans

El Salvador is exploring bitcoin-backed low-interest loans

2022/1/21

El Salvador's government is reportedly looking to create a bitcoin-backed loan product for micro and small businesses across the country. El Salvador has about 1.2 million businesses. More than 90 percent of micro-businesses are self-financing through informal loans or loan sharks, said Paul Steiner, president of El Salvador's National Institute of Small and Micro Enterprises. Ultimately, bitcoin-backed loans will offer lower interest rates than informal lenders, loan sharks, and banks.

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