I am a newcomer on crypto scene but not new to the peer-to-peer lending concept. Though not totally peer-to-peer, the Grameen Bank in Bangladesh, has been heralded as the largest community bank project and has a very negligible rate of default. The funding of the bank is by community and peer pressure as well as family respect protocols keep people motivated not to default on loans.
In the crypto and virtual world, the concept will succeed if community bonding and peer respect takes deep root. In my view, this is feasible but will be very susceptible to scammers who will try to operate on BTTLD concept (Build Trust, Take Loan and Disappear).
I would love to hear your views and views from other experienced Steemians on this.
Thanks - Interesting mental debate as usual for me after reading your article. Upvoted full@kevinwong -
Regards,
@vm2904
Interesting.. which is why I think their focus for their first apps - Friend in Debt, and another for gift cards might work out well. Defaults happen all too often in this day and age if both parties are rather distant, attached only by a thin string of this thing we call "business relationship"
Exactly - finally- business relations involving money do take some form of trust. Even in the traditional banks, people trust well established international banks or they trust their local cooperative society banks