Blockchain Lender Ripio Credit Network Works On Cross-Border Solutionsbr>
Ripio Credit Network (RCN) is Argentina’s largest credit card company, claiming 150,000+ active users. The venture if backed by Tim Draper and Boost venture capital.
RCN enables people all over the world to access credit and to provide loans. With this technology, someone in China can lend money to someone in Mexico, and someone in Brazil could be lending money to someone in Moscow. RCN is a protocol, with smart contracts programmed on the ethereum blockchain.
The key feature of the technology is a new intermediary agent (the “cosigner”) which neutralizes the lender’s credit risk, and in the case of a default, handles the tools to manage the debt in the borrower’s country of residence.
Sebastian Serrano, CEO of Ripio Credit Network, talked with Block Tribune about the company.
BLOCK TRIBUNE: Why do we need a blockchain solution for cross-border lending?
SEBASTIAN SERRANO: Because traditional peer-to-peer solutions have centralization risks and geographical limitations. The whole purpose of using blockchain technology is to eliminate these problems and provide a more efficient and affordable solution to end-consumers. RCN aims to eliminate the traditional market inefficiencies within the lending industry.
BLOCK TRIBUNE: Will this be institutional? Or will the average person be able to do so via a mobile device?
SEBASTIAN SERRANO: We are working on different integrations with several digital wallets where our token is currently listed. One of our main goals is to allow their users to easily borrow or lend directly from within the wallet in the future.
BLOCK TRIBUNE: What steps is Argentina taking toward achieving this, and why are they doing it?
SEBASTIAN SERRANO: In Argentina, the blockchain ecosystem is quite active. There´s a huge entrepreneurial spirit and the government is starting to become more interested in the possible applications of blockchain technology for social welfare especially.
BLOCK TRIBUNE: Inflation has been a problem in Argentina. Is that a factor in the need for this?
SEBASTIAN SERRANO: Absolutely. Countries with high inflation rates can´t provide clear conditions either to borrowers or lenders.
BLOCK TRIBUNE: You mentioned privacy concerns. Are they different in Argentina than in other countries, given its history?
SEBASTIAN SERRANO: That´s not really related to the nature of our project per se. On RCN, we basically need to identify borrowers properly so that both the cosigner and the lender have accurate information. The ERC939 is our approach to Identity and Scoring in the RCN Network.
BLOCK TRIBUNE: Where will things be in Argentina in six months? A year?
SEBASTIAN SERRANO: It´s hard to tell with accuracy but our product is designed for the international markets, not just one country. So we are not really focused on just one particular country situation as our product is global.
BLOCK TRIBUNE: Does the recent down market in cryptocurrency cool progress on this?
SEBASTIAN SERRANO: Not at all. Our vision is for the long term so we are not really worried about short-term fluctuations. All our efforts are focused right now on improving our product and integrating different agents to our protocol. These aspects are the foundations of RCN and they will provide sustainability for the long term.