United Wholesale Mortgage, a prominent US mortgage provider, announced in August that it would begin taking Bitcoin payments. It was the first firm of its sort to announce that it would accept cryptocurrency. Nevertheless, the company’s CEO, Mat Ishbia, has since declared that the plan would not be carried out.
As per Ishbia, the business carried out its testing and concluded that it was not worth it. There is much too much regulatory ambiguity in the crypto area, which, when combined with extra expenses, makes the entire effort more hassle than it is worth. Ishbia stated that the company would not expand beyond the pilot but that crypto payments might be included later.
Bitcoin (BTC/USD), Ethereum (ETH/USD), and Dogecoin (DOGE/USD) appear to be the three digital currencies that the firm experimented with. They also put the system through its paces with various borrowers to ensure that it worked properly.
The pilot was successful, but there was no demand for the product
In September, the business took its first cryptocurrency mortgage payment, followed by five more in October. They did note, nevertheless, that there was no demand for this type of payment. Borrowers liked it, and many felt it was cool, according to Ishbia. The ability to make payments in cryptocurrency, on the other hand, wasn’t a driver.
While regrettable, given the situation, the decision is reasonable, and it demonstrates that many in the business still regard cryptocurrency as an investment rather than a means of payment. Everyone appears to be more interested in HODLing than spending, particularly now that prices are rising.
On the plus side, US officials, notably Treasury Secretary Janet Yellen and SEC Chair Gary Gensler, have stated that no limitations on crypto exchanges or payments are in the works.