Crypto-to-fiat Loans Now a Possibility As ETHLend Introduces Unique Smart Contract
Recently, the world has witnessed the emergence of two financial groups; fiat and virtual currencies; with people divided over the benefits of one over the other. However, the divide is poised to narrow down with the introduction of a crypto-to-fiat loan option.
A blockchain-based lending company built to “provide cryptocurrency lending with the use of digital assets as collateral for the loans,” is now introducing a chapter that will potentially alter its current business model, in turn luring more potential users.
ETHLend, a platform meant for lending cryptocurrencies, published a blog post that focused on its intentions to initiate a process that allows financing by fiat currencies to their current crypto-lending system.
The ETHLend community has been requesting this addition for a long time – and giving in to the extensive requests for an alternative branch – ETHLend finally made the announcement officially on April 13.
Integrating fiat in the firm’s loaning process was essential as the platform has taken into account the growing popularity of crypto-to-crypto lending and feel that is the right time introduce fiat.
Safety for the potential group that intends to be a part of the crypto-lending process is the main focus for ETHLend. Abiding by the current data protection laws, adding KYC protocols to the current system is one of the many measures that can be undertaken to ensure safety.
Global Regulations Can Pose An Issue
Regulation remains a far-fetched thought as to see the light of day, ETHLend will need various permissions, licenses and the support of governments around the globe. The team has initiated talks with various countries operating in the European Economic Area (EEA) and reportedly has obtained the process of getting licensed from them.
ETHLend’s dream of crypto-to-fiat doesn’t end at the EEA, as it aims to initiate the process in the US and then gradually expand its operations to the Asian market. This shall enable the firm to reach out to a larger audience who require the services that the firm offers.
Community Positive About Development
A Reddit user, ‘butterfinguz’ thinks that it was a brilliant move by ETHLend as the world is still a couple of years away from completely accepting the lending/borrowing crypto. And, if the firm (ETHLend), wishes to compete it the current market, they need to appeal to the other group, i.e., fiat.
To prove this point, Stani Kulechov, the CEO of ETHLend, tweeted about his company’s business model, which seemingly dwarfs other crypto-lending businesses. Speaking about ETHLend’s smart contract, Kulechov claimed that his company used over 2,000 lines of code in contrast to the competitor’s 50 lines.