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  • Aaryan Doshi

Peer to Peer Exchange of Goods

Peer to Peer Exchange of Goods image: adobe firefly

FinTech = Finance + Technology. We have all encountered FinTech - often we do not even recognize that we are using FinTech. Examples include paying with credit, shopping on Amazon, buying coffee at Starbucks with points - these are all great examples of FinTech.

The part of FinTech we are most interested in is in the context of a circular economy. How can FinTech help in delivering incentives or making the transition to a circular economy easier?

Let’s taken an example. Suppose I have a jacket that I no longer need but it is fairly good condition. I have also started to learn tennis. Suppose you have a tennis racket you no longer need and are going a trip this summer and need a jacket.

In a linear economy I would simply buy a new racket and discard my old jacket which will likely end up in a landfill. Likewise, you would buy a new jacket and your old racket will remain in garage and end up in a landfill or get incinerated.

However would it not be nice if you and I can simply exchange or swap our respective racket and jacket? This will keep, both, the racket and the jacket in circulation longer. This would be an easy trade if you and I agree that my old jacket is worth the same as your old racket. But what if that is not the case? Currently such exchanges are not possible unless we go through a “middle” party such as eBay that brokers such a transaction. Can we conduct this exchange using some form value other than dollar bills? Can we conduct this exchange directly with each other (peer to peer)? This where the potential of fintech can facilitate such an exchange and make the transition from linear to circular less onerous. FinTech could enable a points based system wherein we can conduct such a trade using “circular” points or we could conduct such ask exchange using some form of digital currency.


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