Key Takeaways
- Bitcoin-backed loans provide critical access to dollar liquidity in fragile economies.
- As traditional savings are wiped out, Bitcoin offers a portable, censorship-resistant way for citizens to store value and build wealth.
- To scale adoption, the crypto industry must offer simpler tools, user education, and more local success stories.
As digital assets gain traction worldwide, their most profound impact may not be in developed markets but in regions facing economic instability, capital controls, and currency devaluation.
In these environments, Bitcoin (BTC) is increasingly being used as a practical financial tool.
Mauricio Di Bartolomeo, co-founder and Chief Strategy Officer of crypto lending platform Ledn, has seen this shift up close.
In an interview with CCN, he explains how Bitcoin-backed loans are helping individuals in fragile economies preserve wealth, access credit, and navigate financial systems that have often failed them.
How Bitcoin-Backed Loans Offer Lifelines in Fragile Economies
In countries plagued by economic instability and hyperinflation, traditional banking often fails to serve the needs of everyday citizens.
For people in places like Venezuela, crypto-backed loans are more than a financial product — they’re a lifeline.
“You deposit your Bitcoin as collateral and receive dollars or stablecoins to use for expenses. The entire transaction can be completed in mere hours,” explains Di Bartolomeo.
Beyond convenience, these loans offer financial fairness and security. “People in places like Venezuela trust these systems and platforms like Ledn much more than local banks,” Di Bartolomeo says.
“They can access financial solutions like our loans at fair and even rates, on par with the same APR that clients worldwide get access to. They are not discriminated against for being in a particular country, ” he said.
By preserving Bitcoin’s upside while offering dollar liquidity, such services are helping individuals survive — and even thrive — amid failing economies.
Bitcoin as a Shield for the Middle Class in Times of Crisis
One of the most profound roles Bitcoin plays in emerging markets is protecting the middle class, which is often the first socioeconomic group to vanish during an inflationary collapse.
“The middle class quickly evaporates in hyperinflationary events,” Di Bartolomeo notes. “A clear divide occurs between those who were saving in dollars and international assets and those who weren’t.”
As local assets lose all value, those without external exposure fall into poverty.
Here, Bitcoin serves as both savings and empowerment. “Bitcoin helps because it’s accessible, divisible, and immune to local monetary policy — an international asset,“ he says.
“A teacher in Caracas can save in Bitcoin each month and, over time, build wealth that can’t be devalued by government decree,” Di Bartolomeo noted.
When liquidity is needed, Bitcoin-backed loans help users avoid selling their assets, keeping their financial growth intact while handling emergencies or investments.
Bitcoin as Core Infrastructure for Emerging Economies
Looking to the next decade, Di Bartolomeo envisions Bitcoin becoming foundational to financial services in the Global South.
“The next decade will see Bitcoin transition to economic infrastructure in emerging markets and the core portfolio asset,“ Di Bartolomeo said.
That’s already starting to happen: “El Salvador is building a LatAm hub for Bitcoin. Argentina elected a Bitcoin-friendly president. African countries are using it for cross-border trade,” the exec noted.
However, challenges remain, particularly psychological and infrastructural.
“Try explaining self-custody to someone whose family is hungry,” Di Bartolomeo cautioned. Still, with better tools and education, the tide is turning.
“The game-changer will be when Bitcoin becomes boring — when a farmer in Colombia can get a Bitcoin-backed loan for equipment as easily as someone in Canada gets a mortgage,“ says Di Bartolomeo.
“Once this infrastructure exists globally, it doesn’t matter if your local currency collapses or your government goes crazy. Your wealth remains safe, accessible, and working for you,” he concluded.
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