Mark Weaden
The second-largest U.S. mortgage lender UWM will soon accept payment in Bitcoin.
The date hasn’t been set, but sometime later in the year, potential homebuyers will be able to pay for their mortgage using Bitcoin. Plans were announced this week that United Wholesale Mortgage would accept cryptocurrency for home loans. This is huge news for both the national mortgage and cryptocurrency industries.
What does the deal mean?
With a growing interest in cryptocurrency from the public, companies accepting regular payments must adjust to the demand and rapid adoption. UWM CEO Mat Ishbia said that the company has “evaluated the feasibility” of the industry and how they could accommodate payments.
The aim is to implement the new system in Q3, meaning they’ll be the first mortgage lender in the U.S. to make such a move, embracing technology and innovation into a foundational industry. The Michigan-based company UWM is also looking at accepting the second-largest cryptocurrency Ethereum as well, offering customers the chance to make payments with Ether. Not only that, but the company will look broadly at the possibility of offering other cryptocurrencies as well.
Cryptocurrency in the U.S.
In recent weeks, we’ve seen the U.S. government push for stricter crypto regulations. With a heightened sense of skepticism surrounding cryptocurrency, UWM comes at an interesting time. On the one hand, accepting decentralized digital assets may seem risky, while on the other hand it adds credence to the coin and will only encourage The Senate to make changes that will facilitate the use of cryptocurrencies.
Revamped cryptocurrency tax rules are a huge part of the proposed $1 trillion infrastructure bill. Crypto traders move funds around all the time and benefit from said trades, so it’s expected that crypto holders pay tax on funds made. As well as taxation, regulation is another hot topic in the U.S. right now, as there has been a global crackdown on crypto exchanges to regulate and educate users.
We are likely to see a lot more regarding the U.S. regulations for cryptocurrency before the end of the year, as the government must look to regulate the flow of digital assets.
