The private Ukrainian pawnshop “Scarbnytsia”, which is one of the largest in the country, published the news on its website informing all users that the pawnshop will soon launch a system which will make it possible to borrow a certain amount of money and leave cryptocurrency as a bail.
“The implementation of this project is due to the rapid development of cryptocurrency and blockchain in the world. Our clients will be able to use the money and receive income from the growth of cryptocurrency rate in the future at the same time”, Ivan Ipatov, the head of the marketing department of Scarbnytsia, commented.
The amount that can be borrowed will be equal to half of the value of the cryptocurrency left on bail, that is 50%.The customers will be provided with a special price calculator for convenience of use. It will help to calculate the type and amount of cryptocurrency needed to issue the required amount of fiat money.
The customers will be able to get a loan in UAH banknotes for up to 31 days. The minimum loan amount will be 10 000 UAH. According to the pawnshop, the whole crediting process is completely transparent and official, as soon as all the debts are paid, the cryptocurrency will be fully returned to the client.
In case the client can not or does not want to pay off the debt in time, or the value of the bailed cryptocurrency falls by more than 30%, the platform with the cryptocurrencies placed on it sells virtual money and sends it to the creditor, that repays the debt of the client.
A special IT system will check the adherence to the accounting of the amount of cryptocurrency in bail and the price which the transaction is fixed at. This means that in case of a jump in the rate of cryptocurrency, the amount of the maximum loan available to the client will be increased, and in case of a reverse effect, that is, if the exchange rate falls, the client will have time to choose an action plan for his cryptocurrency assets.