A new form of lending is taking off in Australia, where creditors are accepting cryptocurrencies like Bitcoin and Ethereum as collateral for loans, worrying economists.

Though the lending practice started in 2017, it became more common during the pandemic and has attracted both attention and concern from experts.

What is crypto lending?

Crypto lending is a practice in which borrowers use their cryptocurrency assets as security for a loan. In return, they can receive funds, often for large purchases like homes or cars.

Meanwhile, lenders make money by charging higher interest rates on the loans compared to what they pay to borrow........

© International Business Times