According to Cointelegraph, Ledn CEO Adam Reeds discussed how Bitcoin collateral can accelerate the flow of funds. Reeds said that many early Bitcoin adopters are reluctant to sell BTC to obtain liquidity, and traditional financial institutions do not accept Bitcoin as collateral.
Reeds believes that through Bitcoin mortgages, holders can obtain legal currency liquidity for business, consumption, real estate or to buy more BTC. Bitcoin loans are efficient and can be financed within a few days, while traditional institutions take weeks or months.
Reeds stressed that Bitcoin is a high-quality collateral with “no wear and tear” and is less risky than real estate or stock loans. In addition, Bitcoin is not susceptible to false media reports and bad news.
Reeds also mentioned that Bitcoin mortgages could help regions that lack banking infrastructure and financial services, such as Argentina, which has an annual inflation rate of 276%, and Nigeria, which has 38 million unbanked residents.
