Subprime Auto Loans: Reason For Using Blockchain for Asset Backed Securities
George Samman explains why subprime auto loans are another reason for using distributed ledgers for asset-backed securities.
There have been reports recently about how the subprime auto lending market is the very similar to the subprime mortgage crisis and could very well be the next bubble. While there are certainly similarities between the two, the purpose of this post will be to talk about how distributed ledgers should be used for asset backed securities. In one of my recent posts, “Could The 2009 Subprime Mortgage Crisis Have Been Avoided With Blockchain?“, I discussed how if distributed ledgers had existed at the time, the crisis at the very least could have been mitigated. The reason I am bringing up another example of this is because history seems to be repeating itself. It seems not much has been learned from the last crisis and asset backed securities continue to exist without any real transparency for investors. For consumers and regulators and this can not go on, as the dangers have become too great.