El Salvador has partnered with a financing company based in Solana to provide businesses with cryptocurrency loans

<p>According to CoinDesk, El Salvador's government intends to offer $10 million in cryptocurrency loans to small and medium-sized businesses this quarter.</p> <p>According to the report, the country would join with Solana-based lending platform Acumen to offer loans to El Salvador's National Commission for Micro and Small Enterprises (Conamype).</p> <p>According to Andrea Gómez, project manager at Acumen, the loans would have an annual interest rate of between 6% and 7%, but might go as high as 10%.</p> <p>That is a fraction of the average annual rate of 2,300 percent that firms, the majority of which operate in the informal economy, pay unregistered lenders for loans, Conamype President Paul Steiner said.</p> <p>Acumen will convert cryptocurrencies to stablecoins, such as USDC or tether, and then deliver US dollars to Conamype, which will distribute the loans to Salvadoran firms and entrepreneurs.</p> <p>Gómez stated that Acumen has 15,000 subscribers and was just approved as a lender by the Central Bank of El Salvador.</p> <p>The crypto loans are President Nayib Bukele's latest attempt to mainstream cryptocurrencies in El Salvador, which made bitcoin legal tender in September. Soon afterwards, he revealed plans to develop the world's first "Bitcoin City," which would mine bitcoin using geothermal energy generated by a volcano, as well as the launch of a "bitcoin bond." Additionally, Bukele has stated when El Salvador will "buy the dip" through bitcoin purchases.</p> <p>However, earlier this week, credit rating firm Moody's cautioned that the country's bitcoin holdings could increase its default risk, prompting Bukele to respond on Twitter. Cathie Wood of Ark Invest, on the other hand, praised El Salvador's bitcoin drive, noting that the innovation is improving people's lives.</p> <p> </p> <p><a href='http://paypal.me/cryptopirates'>Support us!</a></p>