The Libra Credit Platform is a decentralized lending ecosystem that facilitates open access to credit anywhere and anytime. The platform is based on the Ethereum Blockchain.
Libra Credit believes that access to credit should be easy, in quick time, and simple. However, the current method of loan financing is geographically based and long waiting times. Relying on traditional lenders like the banks etc. doesn’t address future customer needs which are getting access to loans and leveraging cryptocurrencies as collaterals. It is expected that global lending would grow over 14% in the next five years, driven by digital currencies.
Libra Credit will be launched sometime in July of 2018, offering cryptocurrency-to-cryptocurrency and cryptocurrency-to-fiat lending. It is a global initiative with a strong mission to provide financial inclusion and lowered financial cost.
How It Works
Libra Credit offers a quick digital lending process that can be completed online or via mobile in 5 simple steps.
Step 1: Application
As a registered member and token holder, you fill an online/mobile loan application form and submit digital documents required to Libra Credit.
Step 2: Verification and Credit Assessment
Libra Credit verifies borrower’s identity after the application is submitted.
Step 3: Notification and Confirmation
You will be notified via APP, SMS or email of the final loan terms that you will accept in one click.
Step 4: Collateral Deposit
You are expected to deposit tokens into Libra Credit’s e-wallet or exchange partners, depending on borrowers preference. The collaterals will be stored for the entire loan period.
Step 5: Disbursement
If you choose to receive the loan in a digital wallet such as Alipay or WeChat Pay, the process will be completed within munites. However, if you decide to have it credited to your bank account, it would be done within one working day.
This is much faster than most digital lenders that require days and financial institutions that could take at least 2-4 weeks to process the request.
The Token
The LBA token is the native token on the Libra Credit Platform. It’s to serve the following purposes on the platform:
- Allow borrowers submit loan applications.
- Will be charged a service fee for every successful transaction on the network.
- As rewards to stakeholders (developers and referrals).
- Token will also be used for voting on specific projects/proposals to facilitate the development of the platform.
During the loan period, you make weekly payments towards settling the debt. When the total amount is repaid, you get your locked up tokens.
The Team
The team behind Libra Credit has a track record in digital credit services across Asia. Powered by its big data, AI-based credit assessment technology and a global partnership network. With these, Libra Credit can realize its mission.
These are notable members of the team you should meet:
Lu Hua, Co-Founder & CEO. He has also been part of moKredit, Paypal China head of core payments, and Paypal US head of global banking platform.
Dan Schatt, Co-Founder & COO. A Fintech and payment expert. The Chief Commercial Officer at Stockpile Inc. and also a General manager of financial innovations at Paypal.
Howard Wu, Chief Blockchain Architect. He owns a Masters in Electrical Engineering and Computer Sciences from UC Berkeley. Also a Bachelor Degree holder in Computer Science and Applied Mathematics in UC Berkeley.
Other members include Shuoji Zhou, Kenneth Oh, Scott Thompson, and Shoucheng Zhang, as Advisors.
Conclusion
The Libra Credit platform is set to make lending easier and loans more accessible to more and more individuals around the world.
The exciting part is you don’t have to spend your cryptocurrencies if you don’t want to, you use it as collateral for getting fiat currencies, and when you pay back, you get refunded all of the cryptocurrencies you have deposited.
This is great for long-term crypto investors. They get funded for whatever project they have at hand while having the value of their cryptocurrencies increase on daily bases.
The best part is anyone from anywhere in the world can get access to these loans.
