The adoption of cryptocurrencies continues to gain ground in the United States, with bars, businesses, ATMs and, now, even the possibility of using them for mortgage loans, as proposed by a Miami (Florida) financial technology company.
The world of financial services is undergoing a revolution. Classic banking is no longer the only actor: with cryptocurrencies as a base, the technology company Milo, based in Miami, has just launched the “Crypto Mortgage”, in which this currency (for the time being Bitcoin) is used to invest in goods. roots in this country.
“We realized that there were international clients with interesting assets in cryptocurrencies who had a difficult time qualifying for a conventional mortgage loan.” in the United States, says Josip Rupena, president and founder of Milo.
Rupena quickly understood that a “chance” for his company, and, in 2021, shaped this type of financial solution for clients “they want to buy a property without having to sell their ‘crypto’ to pay in dollars”, as it happens with a conventional mortgage.
Waiting list
The success of these innovative “crypto mortgages” has been such that Milo currently has a waiting list of 6,000 people who “they want to buy a property and make their monthly payments in cryptocurrencies”.
“There is a lot of demand from customers around the world and we are already processing mortgage loans” in digital currency with interest rates between 5% and 7%, said Rupena, of Chilean origin, raised in Miami and graduated cum laude in Finance from the University of Miami (UM).
Regarding the advantages of thecrypto mortgage”Rupena pointed out that a first is the offer of a financing of up to 100% of the purchase, without initial payment in dollars, and faster than with a conventional mortgage.
In addition, the investor’s cryptocurrency assets do not suffer from the wear and tear of the “opportunity cost“, that is to say, “you don’t have to sell your cryptocurrencies and then see, over the years, how its value rises”, clarifies the creator of the first mortgage “crypto” of the world.
Rupena, who began his career in the world of finance at Goldman Sachs, indicated that “the world still does not understand the value of this customer segment“, of the “opportunities” that it offers and the new financial services in “crypto” that are yet to come.
The truth is that the appeal of cryptocurrency applications has turned them into a social phenomenon, as is evident in Miami, where a popular nightclub, E11even, recently began accepting bill payments in this currency.
The mayor’s office itself announced this summer its interest in becoming the first city to trade with its own virtual currency, the MiamiCoin, a Citycoins cryptocurrency.
Although the Miami mayor’s office is not associated with this initiative, its councilman, Francis Suárez, has shown himself to be an enthusiastic defender of cryptocurrencies and bitcoin in the “Magic City”.
Support cryptocurrencies
Suárez has been a “great supporter and is doing a lot for the tech community in Miami,” said Rupena, whose company was recently lauded by the mayor for its openness to financial services with products like “crypto-mortgages.”
In this ecosystem of the global digital economy, the Bitcoin Conference 2021, the largest event in the history of virtual currencies, was held in Miami with a packed audience and optimistic messages about how this paradigm of financial freedom and intermediation can “change everything”.
In fact, Suárez said he was very happy that his city was chosen to succeed Los Angeles as the venue for the conference and commented that for months “an unprecedented number of companies, technology and investors” they had chosen her to move into.
The “cryptocurrency segment continues to grow in importance and we aspire to launch new solutions” digital, advances Rupena, who previously worked as a financial advisor for Morgan Stanley and today serves international investors from 63 countries, both with digital currency and official currencies.
Regarding the strength and security of cryptocurrencies, he explained that, in 2017, “It was valued at US$400 billion and today it is worth US$2 trillion in total”, despite the fact that many countries warn about its volatility and lack of transparency
Last September, a Latin American country, El Salvador, became the first in the world to adopt bitcoin as legal tender, something that the International Monetary Fund (IMF) wants President Nayib Bukele to reverse.
“The adoption of a cryptocurrency as legal tender poses serious risks to market and financial integrity, financial stability and consumer protection and may result in contingent tax liabilities.”, pointed out the IMF.
On January 21, the president of El Salvador announced the purchase of 410 more bitcoins worth US$15 million, which are added to the 1,220 bitcoins purchased since September 2021.
Source: Gestion
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