Startup BTCJam is using bitcoin to reach out to a global audience via its peer-to-peer lending model.
The San Francisco-based firm says that sidestepping obstacles associated with conventional currencies will make it possible for any borrower around the globe to access credit via its platform, the Bitcoin News reports.
While sending money via wire transfer is usually costly and not always easy to accomplish, bitcoin allows borrowers who meet specified BTCJam criteria to receive money almost instantly, anywhere in the world and without necessarily having to own bank accounts.
BTCJam boss Celso Pitta, who comes from Brazil, has worked in the finance industry before founding BTCJam. He said he worked for Citibank and was familiar with the concept of banking from an insider perspective. Pitta knew he was cable of taking the game to a new level by setting up a peer-to-peer lending platform, he added.
“We are a global lending platform. We use bitcoin as a payment method to enable international, cross-border lending. I worked for Citibank. Knowing banking from the inside, I knew that I could do better: a peer-to-peer lending website. I found bitcoin, and it was perfect. Because now I am global,” Pitta told Coindesk.
Pitta’s company has already given loans amounting to $5 million to people from over 100 corners of the world.
With peer-to-peer lending, lenders come together to offer credit to individuals without using going through conventional financial bodies such as a bank.
In the course of the last 10 years, the idea of peer-to-peer lending has acquired a life of its own as an industry. In 2013, the US alone accounted for over $3 billion in local fiat currency loans extended by the two dominant P2P companies, Lending Club and Prosper.
BTCJam is convinced the P2P global lending market is worth at least $1 trillion.
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