Topic: Would you dare to pawn your bitcoin? - page 4. (Read 509 times)

Pawnshops are like many services. So if you can use your bitcoin as a collateral on exchanges, on lending services, you can do it at pawnshops if they accept bitcoin. Pawnshops somewhat are similar to lending if I am right.

If you ask me when I am a person who wants to use my bitcoin as collateral at pawnshops, I don't have rights to approve it. I am not the business owner/ operator.

If I am a pawnshop owner/ operator, I will have to consider risk of Bitcoin volatility. If my taste is accept risk, I will accept bitcoin as collateral. Obviously, I will only accept it if my pawnshop's Terms of Service has a liquidation term.

With a liquidation term, I might get benefit when I liquidate the collateral like buying a discount bitcoin. It is double benefit if I am a real Bitcoin investor too.

Is there such service where I am? Not directly, though I am sure a deal could be brokered to fix the issue below:


I thought about the same thing. It seems that the deal would be heavily skewed in the borrowers favour. There would have to be adjusted terms in order for this to work.

I suppose the above answers both of the other questions in the OP.

No different then taking a loan against your BTC from some of the larger places that do it online.
The biggest issue I see is regulation and price volatility and the rules that you are agreeing to when you do it.

You give them 1BTC they give you $25000. If the price goes up can you get more cash from them? Or do they give you some back.
If the price plummets back to $15000 and you walk away do they have any way of going after you?

Personally I would not, but that is just me. Would rather just sell and buy back. Unless they are offering very low interest rates, which pawn shops are not known for.

-Dave

In Russia, there is a demand for digital deposites in pawnshops. According to information from forbes.ru, up to 100 requests for money secured by cryptocurrencies are received monthly. In this regard, the pawnshops asked the Central Bank of Russia to clarify the possibility of accepting cryptocurrencies as collateral on a par with gold. To which, the regulator didn't find grounds for banning such activities. For now.

I remind that in Russia the legal status of cryptocurrencies has not yet been clearly defined. Most likely, the legislative framework will be finalized and transactions with digital assets will be regulated so that they receive the status of a full-fledged liquid collateral. And now, it turns out that pawnshops in Russia can accept currencies as collateral, and there are no laws prohibiting this.

Currently, digital currencies are recognized as property only for the purposes of the laws "On Combating Money Laundering", "On Insolvency" and "On Combating Corruption", in other cases, "legislation doesn't establish the legal basis for the circulation of digital currency", says Central Bank of Russia.

Also, in that article (I warn you, the text is not in English), a probable problem is voiced when it is physically impossible to transfer cryptocurrencies to a pawnshop for storage. It seems to me that this is solvable. It is enough for a pawnshop to create its own crypto wallet, to which the client's cryptocurrencies will be sent for temporary storage (until the borrower's debt is repaid).

P.S. This is a slightly loose interpretation of information.


Now let's move on to the question posed in the topic title.
- Would you approve of the possibility of leaving crypto as a deposit in a pawnshop?
- Has such a service not yet appeared in your country of residence?
- How do you feel about the emergence of such new trends in the service sector?

I think that this service in a pawnshop will not be possible without the KYC procedure, which few will like.

Ready to discuss this topic?