Divine Research, led by founder Diego Estevez, is issuing unbacked crypto loans using Sam Altman’s Worldcoin technology, aiming for global reach and leveraging biometric identification for loan enforcement.
This expansion highlights a novel financial experiment in the cryptocurrency space, potentially reshaping lending dynamics and impacting stablecoin markets like USDC significantly.
Divine Research issues unbacked crypto loans using Worldcoin’s World ID, aiming to provide microfinance globally with uncollateralized microloans. Founded by Diego Estevez, Divine Research focuses on leveraging Worldcoin’s biometric identity system to prevent misuse and promote financial inclusion.
The launch has sparked diverse reactions. Some praise the potential for global financial access, while others worry about privacy and identity concerns due to the biometric World ID system involvement. Using USDC for loan disbursement impacts stablecoin liquidity metrics. Sybil resistance and identity verification aim to mitigate typical uncollateralized lending pitfalls, potentially reshaping loan default risks.
Divine Leverages World ID for Microloans
Divine Research issues unbacked crypto loans using Worldcoin’s World ID, aiming to provide microfinance globally with uncollateralized microloans.
Founded by Diego Estevez, Divine Research focuses on leveraging Worldcoin’s biometric identity system to prevent misuse and promote financial inclusion.
Biometric ID Debate Over Privacy Concerns
The launch has sparked diverse reactions. Some praise the potential for global financial access, while others worry about privacy and identity concerns due to the biometric World ID system involvement.
Using USDC for loan disbursement impacts stablecoin liquidity metrics. Sybil resistance and identity verification aim to mitigate typical uncollateralized lending pitfalls, potentially reshaping loan default risks.
Biometric Solutions to Historical Loan Defaults
Past microloan projects faced high defaults and fraud risks. Divine’s biometric approach seeks to address previous issues by ensuring stricter identity control.
Experts suggest that the integration of biometric identity systems might influence technological trust and financial adaptation, though exact regulatory impacts remain uncertain. Diego Estevez, Founder, Divine Research, remarked, “This is microfinance on steroids. We’re lending to everyone from high-school teachers to fruit vendors — anyone with internet access.”
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