Identity verification can provide a false sense of security to lenders, making them give out more than they should given the lendee's reputation. A identity the if could easily cash out on somebody with credit cards and bank accounts, then double up by using the person'should information to get a loan.
The only time this would come in handy is verifying the identity of a already trusted person, which is better done with signed messages anyway. Besides that, collateral is the gold standard.
Word. So what am I going to do with someone's identity? Hop on a plane to Sierra Leone and come beat your ass? Yeah right, and there's no way I can sue for 0.003
BTC or whatever paltry sums are being scammed for. Christ, I wouldn't even bicycle 3 blocks to come beat your ass for that. So ID and all that crap is U-S-E-L-E-S-S. As my nogga said, collateral is king in these parts.