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Bitcoin’s march towards mass adoption continued earlier this week when United Wholesale Mortgage (UWM), the second largest mortgage lender in the US, announced plans to start accepting cryptocurrency as payment later this year.
UWM CEO Mat Ishbia told about it Detroit Free Press that his company plans to start accepting cryptocurrency payments by the end of the third fiscal quarter. He also said the company is considering supporting other cryptocurrencies, including Ethereumbut plans to start with bitcoin before expanding to other coins.
“Before we run, we’re going to walk, but at the same time, we are definitely a leader in technology and innovation, and we always strive to be the best and leaders in everything we do,” Ishbia told the Detroit Free Press. … “This is the plan. Obviously, there are no guarantees – we are still working on some details. But absolutely. “
UWM said during a recent income statement that it closed a record $ 59.2 billion in mortgages in the second quarter, but its revenues fell from $ 1.2 billion in the first quarter to $ 484.6 million in the second, and its net income fell from $ 860 million to $ 138.7 million in the same time frame due to general market conditions.
Will accepting bitcoins as payment significantly affect UWM’s bottom line? Probably not directly. But cryptocurrency recent price hike coupled with the growing interest of institutional investors, technology companies and the general public may make this a good time to start accepting it as payment.
UWM’s adoption of Bitcoin (and later other cryptocurrencies) could also solve the chicken-and-egg cryptocurrency problem. People don’t feel much pressure to use cryptocurrencies because few companies accept them as payment, and since the average consumer isn’t in high demand, companies don’t feel much pressure to accept them.
But now the second largest mortgage lender isCointelegraph noted that UWM lags behind Quicken Loans only in terms of the number of loans issued and their cost – pushing for Bitcoin to become a viable method of paying off one of the most common types of debt in the United States. …
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