• @cryptiod137
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    241 year ago

    Doesn’t the Chinese system also limit access to social services in addition to loans?

    • @[email protected]
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      fedilink
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      1 year ago

      Yes, the Chinese social credit system is a government created thing that’s more a way to punish people who don’t do what the government wants.

      The American one looks dystopian at first glance, but it’s privately created by and for lenders so they all have a shared understanding of the optimal amount and rates to lend to someone. If you or I sit down and make a spreadsheet ranking houses we might buy or quality of restaurants near us, and then give them to a friend so they don’t have to create their own from scratch, we’re doing something not that far off from what credit scorers are doing.