On the latest episode of the Bitcoin.com podcast, Simon Dixon rejoins our host, Zach Doty, to discuss Bitcoin P2P lending the new P2P lending app Credible Friends that Zach himself founded.
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BnkToTheFuture CEO Simon Dixon on P2P Lending
After the first time BnkToTheFuture CEO, Simon Dixon, joined the Bitcoin.com podcast, Credible Friends placed a private placement on the platform, thus prompting another visit from Dixon to talk about the crowdfunding event.
According to Zach, Credible Friends is in the final stages of seed funding, which is open for any qualified investors at bnktothefuture.com. Additionally, after hitting their minimum funding goal of $100,000 Credible Friends is going live in private alpha, allowing people to begin using the app.
Dixon, who is an expert in P2P lending, and has even written a book on it, talks about the origins of P2P lending, saying that it originated in the UK. He goes specifically into how traditional banking evolved into online banking, then into P2P lending.
Dixon says that Mike Harris, the man who was responsible for UK’s first online bank started a chain of events that lead to the first conceptualization of P2P lending by “[thinking] about what the Ebay of banking would look like.”
Dixon also gets into the differences between the P2P model of financial lending and traditional banking. He says that when an institution has a banking license, it gains the ability to create a loan without ever having to create a deposit first.
By breaking down this process, he alludes to the fractional reserve banking system of today. However, Dixon believes that P2P is a solution to this system by requiring a deposit before a loan is made and that it was actually purposefully designed this way.
You can check out the full episode here:
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Images Courtesy of Simon Dixon, Credible Friends, necu.org