But again, in practice banks will loan more money more easily to those with a verified identity that has recourse beyond simple "loss of creditworthiness", so those loans will always be more appealing to those who can get them, and so nonrecourse loans never become a thing for normal citizens who can avoid them.
And those who can't get shunted down into the "Payday Loan" tier of finance and they have to dig themselves back out with the equivalent of deposit-backed credit cards.
But few people will choose a deposit-backed card when they have the option of trading identity for better pricing / convenience. If the online ad industry has taught us anything it is that mainstream consumers will trade their data for even the smallest of considerations.
Even if decentralized financial identity would be an improvement (and it is not clear that it would be), a vision with no practical incentive to get there from here is just the basis for another startup destined for whatever is the spiritual successor to f*ckedcompany.com.
And those who can't get shunted down into the "Payday Loan" tier of finance and they have to dig themselves back out with the equivalent of deposit-backed credit cards.
But few people will choose a deposit-backed card when they have the option of trading identity for better pricing / convenience. If the online ad industry has taught us anything it is that mainstream consumers will trade their data for even the smallest of considerations.
Even if decentralized financial identity would be an improvement (and it is not clear that it would be), a vision with no practical incentive to get there from here is just the basis for another startup destined for whatever is the spiritual successor to f*ckedcompany.com.