When one lends cryptocurrency I assume the loan comes with an interest? Given the fixed supply of bitcoins or what have you, where will the coins to pay the interest come from? Or does it work differently in cryptocurrency world? Genuinely curious.
Indeed, even with a fixed supply token, a borrower would simply have to come across the necessary amount of principal + interest in the loan term.
Bottom line: we don't think the monetary policy of crypto-assets will have much of an impact on default rates in the short term.