Unlike BTC, Altcoins lack solid foundations that maintain their value.
Including Altcoins into the mortgage market introduces a structural risk.
On June 25, the Federal Housing Financing Agency (FHFA) announced that Fannie Mae and Freddie Mac, two pillars of the United States mortgage market, may consider cryptocurrencies when evaluating applications for mortgage loans. The measure seeks to integrate digital assets into the traditional financial system.
While it is true that this measure gives Bitcoin (BTC) more legitimacy within the traditional financial system, it also raises repercussions for the rest of cryptoactive, better known as Altcoins, which represent 40% of the market. This I could feed a speculative bubble.
Although it has not been specified what cryptocurrencies will be accepted, it is logical to think that the most capitalization altcoins such as Ethher (eth), Solana (Sol) or Cardano (ADA), among others, may be presented when requesting a mortgage, without the need to convert them to dollars.
This implies that a person with a significant portfolio of Altcoins could use these assets as support to access a loan for the purchase of a home, which entails associated risks.
Unlike Bitcoin, which has a robust decentralized network, an adoption that does not stop growing and clear rules, in addition to a supply limited to 21 million currencies, Altcoins in general do not have solid foundations that support their long -term value.
The Altcoins are subject to greater volatility than Bitcoin for their lower market capitalization. This instability makes them considerably more risky than Bitcoin, whose price, although volatile, is backed by greater institutional acceptance and a consolidated global user base.
The consideration of multiple cryptocurrencies in the mortgage market generates a systemic risk, since if the banks assume that these assets will maintain a value required to cover a loan in case of non -compliance, there is the possibility that, given an abrupt fall in the price of the Altcoins, the guarantees are insufficient. This scenario Increase the possibility of delinquency and defaults.
Such a situation refers to the subprime mortgage crisiswhen high -risk loans backed by overvalued assets collapsed and triggered a global financial crisis. In the case of Altcoins the risk is even greater.
The subprime mortgage crisis broke out in 2008, driven by the accumulation of mortgage loans granted to people with low payment capacity. When housing prices began to fall and many borrowers stopped fulfilling their obligations, the banks were found with assets whose value was much lower than expected.
The collapse of this system triggered a chain reaction that hit financial institutions around the world and resulted in the greatest global recession since the great depression.
Thus, the new FHFA implementation faces some challenges. The provision published by William Abolte, director of the agency, establishes that Fannie Mae and Freddie Mac should only consider cryptocurrencies “that can be demonstrated and stored in a centralized exchange regulated by the US. UU. And subject to all applicable laws”, but It has not yet clarified how these assets will be assessed or how their volatility will be managed.
Senator Cynthia Lummis has also presented a project of law to demand that credit companies sponsored by the US government consider digital assets by evaluating the eligibility of single -family mortgages.
This legislation, which seeks to encode the FHFA communicated directive, would prohibit the conversion of these digital assets to dollarsto maintain its essence. This is in order to increase access to young people to have their first home, something that is in descent generating concern.
However, the truth is that, to avoid a new real estate bubble, the Government must establish clear and transparent parameters, which include limits to exposure to Altcoins and strict valuation requirements. While the United States seeks to lead the sector, the challenge will be to balance innovation with stability, ensuring that the enthusiasm for alternative currencies Do not become a formula for financial disaster.
