Due to the currency crisis, crypto wallets are back on the scene

after cryptocurrency accident, The extreme volatility experienced in Argentina over the past 30 days has brought crypto wallets back to center stage. The rush to the peso gave them an extra boost: in the days of maximum uncertainty, many savers turned to them to dollarize themselves. And the different players responded with a battery of options: from pesos loans to new plastics to pay for purchases in the “fiat world”.

In mid-July, the Argentine stock exchange Buenbit presented its clients Flexible loans: they allow you to apply for loans of up to 1 million dollars and only have the collateral of your cryptocurrencies. In this way, Buenbit, one of the companies hit by cryptocrash in the second quarter of the year, became the first exchange in the region to offer collateralized loans.

What does it mean? that a user can earn by applying for a loan in “crypto-pesos” called nuARS to consume, without giving up your savings in cryptocurrencies, leaving a guarantee (i.e. a guarantee) in DAI; the stable cryptocurrency that maintains parity with the US dollar and is recognized as the digital dollar.

When the loan is requested, the amount of DAI that remains as collateral is calculated and blocked until the full repayment of the borrowed money. Everything happens within the app and in simple steps. In a dialogue with Clarín, Federico Ogue, CEO and founder of Buenbit, explained: “In this way, anyone with cryptocurrencies or cryptocurrencies can take out a loan in pesos at a very low rate”.

One of the most interesting points of the product is its ultra flexible form of cancellation: the user pays as and when he wants. There are no minimum return amounts. “It is an open loan, without installments, without minimums, without penalties. The loans are based on the guarantee, always lower than the guaranteed amount”, explained Ogue.

“This is a way to take advantage without getting rid of savings, here you can access credit and continue to receive the interest generated by being invested in DAI,” added the executive. “We are seeing that people have dollars in the mattress, in the safe, doing nothing and they don’t want to sell them, and they prefer to leave it as collateral and have a cheap line of credit. The dollars remain and the person receives a loan in pesos, “he added.

According to Ogue, the destination of these loans is varied: from financing the working capital of some SMEs or businesses to installment financing for trips abroad, following the latest tightening of the exchange rate.

prepaid card

Meanwhile, the global exchange Binance has doubled its stake in the country and presented, in alliance with Mastercard, Binance Card, a prepaid card that can be loaded with pesos and allows users to pay in physical and virtual stores using the balance of their cryptocurrency investments.

“Argentina is the first Latin American country to have the product. The Binance Card is part of the company’s ongoing efforts to promote the global adoption of cryptocurrencies in a tangible way. The product is in beta and will be widely available in stores “. in the coming weeks, “the platform created by Changpeng Zhao explained in a statement.

“Payments are one of the first and most obvious use cases for cryptocurrencies, although their adoption has a lot of room to grow.” Using the Binance Card, merchants continue to receive fiat and users pay in the cryptocurrency of their choice.

“We believe Binance Card is an important step in promoting greater use of cryptocurrencies and global adoption and is now available to users in Argentina,” said Maximiliano Hinz, Binance General Manager for Latin America.

YN