rate and form of payment

The mortgage loan market is almost non-existent in Argentina, but is it possible to save in crypto to buy a property?

The lack of access to credit, unstoppable inflation and the continuous devaluation of the peso make up a Hostile environment to fulfill the dream of owning a home.

To this we must add that the home loans are virtually non-existent and those that are offered have requirements and obligations that leave out almost the entire population.

In this context, cryptocurrencies offer tools for users to save in hard currency and shorten the path towards a property.

Loans in cryptocurrencies: how they work

Iñaki Apezteguia, teacher and specialist in cryptocurrencies, affirms to iProUP: “Although it is increasingly difficult to access a home, technology can be useful in this objective. For example, it is possible to place a cryptocurrency as collateral, of which you own holdings, such as bitcoin, ether or other, to access a loan in pesos or dollars to acquire a property“he points out.

The expert points out that these assets “They have been gaining popularity in the payment of the real estate operation“, so that this saving can be transferred directly to the purchase.

In this sense, the economist Darian Yane points out to iProUP that “in the crypto loan system you practically have to leave the same money as collateral. And if you have those funds in crypto assets, then it is very likely that you do not need the credit.”

However, Nicolás Verderosa, CEO of Gangster Paradise, remarks to iProUP what “collateralized loans are an alternative for “those who have their savings in cryptocurrencies and they don’t want to spend that capital to make a certain purchase”.

In this way, the executive points out that “the emergence of collateralized credits in digital currencies opens the game so that many people can access their own house, or a car. The crypto world offers a wide range of options that are banned in the ‘fiat world'”. In summary, these loans work as follows:

  • The user places a collateral in a currency (for example, Bitcoin)
  • Receive the equivalent of 80 or 90% in another currency, such as USDT
  • Pay at your own pace, provided that the principal plus interest is paid over a certain term
  • By canceling it, you receive your collateral and avoid, for example, parting with Bitcoin

For those who do not have all the capitalthe Abbot indicates that the solution with digital assets is to “buy tokenized square meters of a property“. These platforms buy or build the property and create digital assets for any user to acquire a portion according to your possibilities.

“This is beneficial not only because square meters are being purchased of a property, but also because it is feasible to benefit from the rental of that property“adds the expert.

Indeed, platforms like SumarInversion, Crowdium or Simplestate offer the possibility of investing and receive a proportional gain in case of sale or rent of the property.

In parallel, Federico Ast, crypto teacher and executive director of Kleros, assures iProUP that one of the main advantages of cryptocurrencies is that they make the largest capital market in the world.

Identity is an obstacle to loans in the crypto environment: an asset cannot be executed in the event of default

Identity is an obstacle to loans in the crypto environment: an asset cannot be executed in the event of default

“As there are more possibilities of greater liquidity, a good part of it can turn to crypto home loans. This eventually facilitates access at a lower rate,” says Ast.

Crypto loans: how they can be used to acquire a property

As mentioned, loans with digital currencies work shape similar to a “garment”: since a certain amount of crypto assets as backup.

Apezteguia points out that the average user probably does not have enough capital to take them, despite the fact that “adoption is growing rapidly in Argentina.”

Meanwhile, an intermediate solution consists of taking a loan with a collateral with cryptocurrencies tied to the dollar (DAI, USDT) and use as form of payment a digital currency tied to the peso (numARS), as offered by BuenBit.

That’s how it is possible to save in “green” and pay installments in pesos, with an interest close to that of a fixed term. I mean, a lot cheaper than bankssince the collateral funds are placed in a DeFi protocol that generates returns and helps lower the rate.

“About the collateral that you leave, the amount that you you withdraw is 80%“, entrust to iProUP Matías Alberti, Operations Manager (COO) of It will be goodwhich features:

  • The concept ‘quota’ does not apply because it is an open credit without ‘maturity’: the daily interests that are generated added to the capital will progressively approach the collateral”
  • The user must partially or totally cancel the loan, at any time, 24/7. Payments are made with nuARS: there are no minimums or maximums”
  • If the capital plus daily returns reach 90% of the guarantee and did not make any payment, 10% is automatically settled of the collateralwhich will be available to user
The great obstacle of loans with cryptocurrencies is that you must put an amount as collateral

The great obstacle of loans with cryptocurrencies is that you must put an amount as collateral

Perhaps, in the future, digital currency loans will be more similar to those of banks. For Ast, “the big problem they have is that there is no way to know the identity of people.”

At this point, he highlights that “if the users are only ‘a crypto address’, there are no guarantees, since they can disappear without any cost. Fortunately, there are new protocols and applications that have been developed” in this sense.

“Kleros is working on a project called Proof of Humanityallowing each person has an identity and cannot duplicate it in the crypto world. Thus, credit scoring (in the Veraz style) would be encouragedjust like in the traditional world,” adds Ast.

The expert believes that these initiatives are the solution to offer credits with cryptocurrencies without collateralnecessary to finance high ticket purchases in populations with low purchasing power.

“These identity protocols allow the crypto credit market is more similar to that of traditional loansin which the applicant puts his reputation rather than money as ‘guarantee’,” concludes Ast.