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Banks don't need to issue fully collateralized loans. That is not a thing people need to do in the real world, because banks will gladly issue partially collateralized loans.

As for anonymous loans, those exist solely to service criminal customers, so that is not an advantage of cryptocurrency.

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For people holding crypto assets which they don't plan to sell, it's a valid way to borrow other assets for use. Potentially for other investments. Definitely not just for criminals.

And overall, it's a demonstration of a financial product which can only be built in the space of decentralized finance. I do not know of another tool which allows anyone around the world to borrow significant amounts of money anonymously and without an account. Whether it's a net good for the world I don't know, but I do believe it's a powerful technology and space.

People who equate privacy from banks and the state with criminality are the reason the financial system has normalized mass-surveillance and the principle of 'guilty until proven innocent' inherent in AML laws, and the reason why the financial system has become so laden with financial friction, power disparities, and exclusion of marginalized populations.

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