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Daily Maverick
08-07-2025
- Business
- Daily Maverick
Crypto Corner: Crypto can play a role in the virtual and physical property game
Cryptocurrency is increasingly moving into the real world with even the US Federal Housing Finance Agency considering crypto in deciding whether someone has enough assets to qualify for a home loan. A recent conversation with a game developer about his exploits in the metaverse revealed something to me that I had never quite understood. You see, like most rational adults, I couldn't understand how and why people would spend money on virtual property. There's infinite supply because the developers can just make more space, right? Apparently not. When you're buying virtual property, you're actually buying compute capacity (or computing power) on a server somewhere, and that costs money. Your NFT is like your house key – and GPS coordinates to let that particular part of the internet know where it is (the interplay between the internet and private blockchains is complex, but I digress). This transaction is also done via the crypto token associated with that blockchain, which is Solana in this particular case. What is concerning is that the developer quickly swaps to a stablecoin and then moves to an exchange to cash out – because some bills can't be paid with crypto, yet. Meanwhile, in the meatspace (that's what early metaverse enthusiasts called the physical world), the US Federal Housing Finance Agency is considering cryptocurrency when deciding whether someone has enough assets to qualify for a home loan. So if someone owns R1-million in bitcoin held on Binance, for instance, that might help boost their application. Why is it considering this? Because the housing market is struggling under high interest rates and including crypto could help more people qualify for loans. It also aligns with a Trump administration push to make the US a global leader in crypto innovation. This is also exactly the kind of thing that is quite catchy for emerging economies that are looking to capitalise on the crypto momentum. If the idea spreads here, I wonder if that game developer's crypto earnings could be used to secure a traditional home loan. He could then systematically convert his virtual property gains into rands to pay off the real-world property debt. DM This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.
Yahoo
27-03-2025
- Business
- Yahoo
FHFA Chief Ends Program Designed to Help First-Time Homebuyers
(Bloomberg) -- The head of the US Federal Housing Finance Agency ordered to end Fannie Mae and Freddie Mac programs intended to support first-time homebuyers by providing down payments and closing-cost assistance. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Why Did the Government Declare War on My Adorable Tiny Truck? Trump Slashed International Aid. Geneva Is Feeling the Impact. How SUVs Are Making Traffic Worse Paris Votes to Make 500 More Streets Car-Free Bill Pulte, who was confirmed as FHFA director earlier this month, signed a directive Tuesday to terminate special purpose credit programs supported by the two government-sponsored enterprises, according to a notice posted on X. SPCPs, designed to help economically or socially disadvantaged groups, allow lenders to offer certain credit flexibilities, such as special pricing for certain loans. The programs, created through the Equal Credit Opportunity Act, allowed certain first-time homebuyers to have lower downpayments and credit scores. President Donald Trump has been pushing to purge diversity, equity and inclusion policies from the federal government and corporate America, issuing executive orders banning the practice and asking agency heads to identify targets. The FHFA 'has determined that the current level of support for SPCPs is inappropriate for regulated entities in conservatorship,' according to the notice signed by Pulte. The real estate industry is carefully watching moves by Pulte who would play an important role in any effort to privatize Fannie and Freddie. Releasing the entities from conservatorship should be 'carefully planned' to keep the housing market stable and not pressure mortgage rates, he said last month. The Mortgage Bankers Association, an industry trade group, has previously supported SPCPs as a tool to increase mortgage-credit availability to underserved groups. Pulte signed a separate order Tuesday waiving certain requirements related to 'equitable housing finance planning and reporting,' according to a post on X. Those rules required the FHFA to adopt an equitable housing finance plan and publish an annual performance report related to the process. Business Schools Are Back Google Is Searching for an Answer to ChatGPT The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers ©2025 Bloomberg L.P. Sign in to access your portfolio
