Translated by: Block unicorn
Preface
There is an ironic phenomenon in modern finance. You might hold Bitcoin worth $400,000, yet struggle to get approval for a $300,000 mortgage. Your digital wealth might make you look rich on paper, but when you actually want to purchase a big-ticket item like a house, it seems to become invisible. This is especially true if you previously did not have a good credit record.
This absurd phenomenon makes me wonder: If wealth is real, why isn't it recognized?
On Monday, this absurdity was one step closer to being resolved.
The newly appointed Federal Housing Finance Agency (FHFA) Director Bill Pulte tweeted.
Within hours, crypto elites responded.
Michael Saylor proposed his Bitcoin credit model. Jack Mallers from Strike volunteered to make Bitcoin-backed mortgages "a reality in America".
The signs are clear: The credit system we know is rapidly changing and gradually accepting cryptocurrencies in new ways every day.
[The rest of the translation follows the same approach, maintaining the original structure and translating all text except for the specified tags and terms.]Some challenges are being addressed by developing low-collateral lending protocols. Platforms like 3Jane have developed "credit reduction" mechanisms that bridge the gap between anonymous lending and real-world accountability. Their approach allows borrowers to initially maintain privacy, but default triggers a process where collection agencies can access real-world identities and pursue recovery through traditional debt collection methods, including credit reporting and legal action. Borrowing anonymously comes with the risk of default.
For cryptocurrency holders, Pulte's statement represents long-awaited recognition. Your digital assets may ultimately be viewed as "real" wealth in mainstream financial eyes. For the housing market, this could unlock a group of buyers previously excluded by outdated qualification methods.
However, the specific implementation will determine whether this becomes a bridge to financial inclusion or a path to the next crisis. Integrating cryptocurrency into the mortgage realm requires a cautious risk management approach that the financial industry has not traditionally excelled at.
The barriers between cryptocurrency and traditional credit are beginning to crumble. Whether what emerges is a more powerful, inclusive financial system or a more fragile house of cards will depend on how carefully we build bridges between these two worlds.
