Bitcoin and peer to peer

(Sven) #1

Hi given this is marketed as a bank of the future - will this also support cryptocurrencies - or perhaps provide users access to their Bitcoin wallets?

Also what are your views on peer to peer lending - ie The ability to lend to someone who needs an overdraft is matched with someone who is keen to lend - money would be safe guarded to some extent by a bad debt fund similar to ratesetter…

BitCoin deposits?
(Tristan Thomas) #2

Hey @Sven, good questions! I’m not sure we’ll be looking to support bitcoin for at least the foreseeable future – there are so many things we want to focus on first that can affect many more people :slight_smile: Of course, it it becomes something that is more widely used and users genuinely want, we’ll definitely take a look.

In terms of P2P lending, we’d love to integrate with companies like Ratesetter and Funding Circle :smiley: Watch this space!

Smart Contracts

I can see quite an advantage to Monzo acting as a liquidity intermediary between Ratesetter (who are good people to talk to) and Monzo subscribers.

I imagine an “invest my excess balance” option. If clicked it asks how much, say in units of 100 pounds. Those funds are then “greyed out” and can’t be spent via debit card.

Monzo put 75% of all these reserved amounts into Ratesetter, and get say, a 3% return.

The other 25% is kept as a float, so that there is cash available to allow users to change their minds.

Monzo keeps 1% of the return as a fee.

The users get around 1.5% interest, which is the Ratesetter return, less Monzo fee, less the fact only 75% is invested so as to keep a float.

This doesn’t sound much, but it’s way more than regular accounts.

Over time Monzo would adjust the 75/25 split depending on how much float turned out to be needed.

What I haven’t answered is where the risk sits. Monzo couldn’t take on the risk directly, but perhaps it could be insured.