"Ripio Credit Network (“RCN”) is a protocol based on smart contracts and blockchain technology, which brings enhanced transparency and reliability in credit and lending.The protocol enables connections between lenders and borrowers located anywhere in the world, regardless of currency. By reducing the traditional banking brokerage costs and management fees, RCN aims to allow better conditions for both sides, creating a better credit alternative than anything available today. By including an intermediary agent (the “Cosigner”), the RCN seeks to neutralize the lender’s credit risk and, in case of a default, provide an alternative mechanism for managing the debt collection in the borrower’s country of residence."
What we don't like:
How will Ripio Credit Network handle defaults? RCN walks an extremely tight rope with the release of their platform. They need to ensure that the position of Cosigner is profitable. If RCN or any cryptocurrencies are not seen as legal tenure in the countries where they loan, credit agencies have the authority to collect. Will defaults on a RCN loan hurt your credit score? They must develop and implement legal infrastructure to stop people from taking the money and running.
What we like:
Ripio Credit Network is an original idea to create a peer-to-peer lending service through the blockchain. The Ripio Credit Network team comes from BitPagos the leading Latin American Fiat to BTC exchange. They have the infrastructure in place for this type of platform, and have tested lending services on Bitpagos. The Ripio Credit Network lending service implements a Cosigner to limit the risk for lenders. The Cosigner assumes the risk of the borrower in the same country so they can bring in local authorities to ensure the loan is paid.