“The End of Alchemy” by Mervyn King

I have been asked by investors, staff and media the same question: “Why did you choose the name ‘Alchemy’ for your peer-to-peer lender?”

It’s a terrific question and it’s high time I provided a fuller answer to the query.

I was still quite young during the 2008–2009 economic crisis, so a few years ago I decided to study the events closely to learn as much as I could. I picked up a phenomenal book called “The End of Alchemy” by Mervyn King, who presided over the Bank of England during that time.

Mr. King wrote: “For centuries, alchemy has been the basis of our system of money and banking. We can end the alchemy without losing the enormous benefits that money and banking contribute to a capitalist economy.”

Another passage that resonated with me: “The problem with private banks’ creation of money is obvious. Money in the form of private banknotes and deposits is a claim on illiquid assets with an uncertain value. So, both its acceptability and stability can from time to time come under threat.”

Of course, my favorite passage of all, and the creation of our peer-to-peer idea examines the: “potential economic benefits from allowing financial intermediaries to explore and develop different ways to link save and borrowers.”

Thank you, Mr. King, thank you.