Share this article
El Salvador Plans to Offer Crypto-Based Loans for SMEs
The government will launch a first line of $10 million provided by the Solana-based lending platform Acumen in the first quarter of 2022.
Updated May 11, 2023, 4:03 p.m. Published Jan 21, 2022, 6:34 a.m.
The government of El Salvador plans to offer small and medium-sized companies (SME) $10 million in crypto-based loans as of the first quarter of 2022.
Acumen, a Solana-based lending and borrowing platform, will provide U.S. dollar funding to El Salvador's National Commission for Micro and Small Enterprises (Conamype), a government entity that plans to allocate financing to local informal entrepreneurs and self-employed workers, Conamype's president, Paul Steiner, told CoinDesk.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Acumen's loans will have an annual interest rate of 6% to 7%, although it could reach up to 10%, Acumen's project manager, Andrea Gómez, told CoinDesk.
According to Steiner, 86% of the companies in El Salvador operate in the informal sector and do not have access to banking services. Of that percentage, 98% rely on unregistered lenders offering loans at annual interest rates of 2,300%, on average, he added.
"They are loan sharks charging between 20% and 25% per month. That is what we want to avoid," Steiner said.
According to Steiner, the government has been in talks with Acumen since October 2021, following the approval of bitcoin as legal tender in the Central American country. In parallel, it holds negotiations with different crypto lending platforms looking to provide loans to Salvadoran SMEs, Steiner said, adding that, if signed, the agreements could total $200 million.
Acumen will convert crypto to stablecoins – USDC or tether – and send U.S. dollars to Conamype, which plans to deliver U.S. dollars to Salvadoran SMEs and entrepreneurs through the state-owned bank Banco Hipotecario, Steiner said.
Conversely, Salvadorans will pay capital and interests in U.S. dollars and the government will return U.S. dollars to Acumen, Steiner said.
El Salvador's government and Acumen are still defining details of the agreement, said Gomez, who added that the product will be ready in the first quarter of the year.
According to Gomez, Acumen currently has 15,000 users and was authorized as a lender by the Central Bank of El Salvador in November 2021.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Tom Lee urges BitMine shareholders to approve share increase ahead of January 14 vote
The chairman of the former bitcoin miner-turned-ether treasury firm reiterated his view that Ethereum is the future of finance.
What to know:
- Tom Lee, chairman of Bitmine Immersion (BMNR), urged shareholders to approve an increase in the company's authorized share count from 500 million to 50 billion.
- Lee assured shareholders that the increase is not intended to dilute shares, but instead to enable capital raising, dealmaking, and future share splits.
- Shareholders have until January 14 to vote on the proposal, with the annual meeting scheduled for January 15 in Las Vegas.
Top Stories
