Bitcoin recoups losses as crypto lender now accepts NFTs as collateral

Large financial firms using collateral as protection against loan failure is not unusual, but the introduction of the use of NFTs is a major step towards validating the industry, which has exploded in growth over the past year.

As we do every week, we turn to Simon Peters, market analyst and resident crypto expert at eToro, to give us a rundown of what’s happening in the crypto space.

Bitcoin and Ethereum recover lost ground

Crypto-assets began a slow march last week, with bitcoin and ether recovering small amounts of lost ground from precipitous falls in previous weeks.

Bitcoin started the week above $35,000 but fell to near $33,000 on Monday. However, since that low point, the crypto-asset has started something of a recovery, with a major rise above $37,000 in late trading on Monday, peaking above $38,000 on Tuesday. The cryptoasset has maintained its value in the $37-38,000 range ever since.

Meanwhile, Ether had a more volatile run throughout the week, hitting lows under $2,200 on Monday before surging to over $2,600 on Wednesday. The cryptoasset has now settled to trade in a range between $2,500 and $2,600.

Crypto Lender Begins Accepting NFT Collateral

Crypto firm Genesis said it intends to accept non-fungible tokens (NFTs) as collateral on loans and derivative agreements.

Genesis is one of the leading institutional crypto investment platforms. The company says it already holds “kept” NFT collateral from customers.

The company’s head of derivatives trading on the platform said it would take a “very conservative” approach to using technology against lending.

Large financial firms using collateral as protection against loan failure is not unusual, but the introduction of the use of NFTs is a major step towards validating the industry, which has exploded in growth over the past year.

Genesis took out loans worth $50 billion in the last three months of 2021, demonstrating the huge potential of NFTs as collateral.

A Belgian politician will accept a salary in bitcoins

Belgian MP Christophe De Beukelaer said he would convert his salary to bitcoin every month.

The deputy will use the Bit4You platform to convert his €5,500 salary into BTC. De Beukelaer said he was following the example of the mayor of New York in his decision to put his salary in the cryptoasset. The politician says he hopes the move will help promote Brussels and Belgium as a European crypto hub.

De Beukelaer is the first European politician to say he wants to earn his salary in crypto-assets, but he follows mayors of New York, Eric Adams, and Miami, Francis X Suarez.

De Beukelaer commented in a blog post on his website: “I am the first in Europe, but not in the world, to want to shine the spotlight on cryptocurrencies with such an approach.”

IMF continues war of words with El Salvador

The IMF has said that El Salvador’s use of bitcoin as legal tender poses a threat to the country’s stability.

The Central American nation became the first in the world to adopt bitcoin as its official currency in September last year, with the IMF a staunch critic of President Nayib Bukele’s decision.

The IMF said there are “great risks” associated with using BTC for “financial stability, integrity, and consumer protection.”

The organization urged El Salvador to reduce the scope of its project and remove the status of the crypto-asset as legal tender.

Bukele, however, has been defiant as the country continues to buy BTC, and he recently bought an additional 410 tokens as prices in the broader market fell.

– Author: Simon Peters

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