I took out a crypto loan today, denominated in euros, with crypto as collateral. And (hopefully) this week I am going to a dealership in Calgary to buy a used car with it. They are okay with getting the entire amount in crypto.
I am paying back the equivalent of the amount in EUR, in crypto over 365 days with 1% of interest. If I default it will cost me my collateral (which is currently worth less than the loan) which is right now a mix of hybrix, vesper and premia (these are all ERC20 tokens)
So here is what happens. First the dealership was okay with just the down payment in crypto. But I still needed financing. Their finance guys even at 5% did not want to give me a loan because since the 11 years that I came to Canada I have never need to borrow, neither have I used a credit card. So I have no credit. And no credit is the same as having bad credit.
So none of these guys want to loan me a single cent.
So I went in to crypto. I would have preferred to have this load be done in decentralized way using a smart contract, but the high fees on Ethereum make this to risky both for lender and borrower.
So I did it centralised based on trust. Trust once established goes a long way.