Michigan-based United Wholesale Mortgage (UWM) said it plans to accept crypto for payments before 2021 ends. This would make it the first major U.S mortgage lender to offer this service.
The crypto industry has arguably struggled to find its feet as far as mainstream use cases are concerned. That by no means reflects the significant number of use cases that do exist.
Rather, the issue seems to stem from a lack of mainstream acceptance. But are we on the cusp of change?
Certainly, as more and more companies enter the crypto ecosystem, and in turn, make crypto services available to everyday people, it’s only a matter of time before mass adoption is here.
Crypto For Mortgage Payments
Despite the current challenges, paying in cryptocurrency is still something that is catching on.
A survey of over 8,000 U.S consumers, including current and former crypto holders, as well as no-coiners, revealed some startling results.
As many as 93% of respondents, who are crypto users, said they would consider making purchases in crypto in the future. While 59% of consumers, who are no-coiners, are interested in using it for purchases.
General crypto purchases are one thing. But big-ticket items, such as mortgage payments, are something of a game-changer altogether.
During a conference call with analysts to go over the firm’s second-quarter results, the UWM management team confirmed that crypto for mortgage payments is happening.
The company’s CEO, Mat Ishbia, said they are racing to make this a reality before other lenders can steal a march.
“We’re excited that hopefully (this year) we can actually execute on that before anyone in the country.”
Regarding which cryptocurrencies they will accept, Ishia said they are starting with Bitcoin but are also looking at Ethereum and others. Ishia further implied many multiple other options could be available in the future.
“We’re going to walk before we run, but at the same time, we are definitely a leader in technology and innovation and we are always trying to be the best and the leader in everything we do.
Scam Reputation Hurting Adoption Prospects
There’s no shortage of prominent figures who question the legitimacy of crypto. This list includes Bill Gates, Charlie Munger, Warren Buffett, Peter Schiff, Nouriel Roubini, and many more.
Another is the mathematician and author of the Black Swan, Nassim Nicholas Taleb. Speaking recently to CNBC, Taleb called Bitcoin a gimmick and too volatile to be any kind of worthwhile hedge against inflation. Not mincing his words, Taleb further added that Bitcoin has all the hallmarks of a Ponzi scheme and has no right to be involved with anything related to finance.
“It’s a beautifully set up cryptographic system. It’s well made but there’s absolutely no reason it should be linked to anything economic.”
No-coiners who are somewhat on the fence, or perhaps those swayed by mainstream and populist opinion, would internalize Taleb’s words as if they were true.
Sadly, such one-dimensional thinking imposes a great injustice on the crypto sector, hindering adoption in the process.
Fortunately, companies of the likes of UWM are able to see past the noise. And as more follow suit, you find that the Talebs of this world will become increasingly irrelevant.