I'm sure that this idea has been explored before, so I want to know what are the downsides that I miss.
Currently there are two options for buying Nano with fiat: Exchange (e.g. Binance) & Swaps (e.g. Changelly).
For "normal" users (ones who do not wish to trade cryptos for capital gain), both has it's own downsides.
1. Exchange: KYC, delays (sometimes money transfer takes time), fees, confusing for "normal" user, indirect (fiat -> BTC -> NANO)
2. Swaps: KYC, worse exchange rate
Wouldn't it be helpful if there's a place where the price is fixed to the mid-market rate, feeless, and peer-to-peer (as in, you deal with the other directly)?
It might be more economical because although you get slightly worse exchange rate (but not as bad as swaps) there's no fee involved. Additionally, there's no KYC, straightforward, and fast.
This place is more for ones who want to use the currency as a medium of exchange, instead of ones who want to speculate on the price swings. The assumption is that most of the time there are people who have a need to exchange fiat to NANO and vice versa for buying goods/services and just want to be done with it fairly.
The downsides that I see:
1. Scam: since you deal with the other directly, it's difficult to trust the other. However, this might be OK if you exchange only small amount, or you can meet up with the other, or you somehow knows that the other is reputable
2. Liquidity: There probably not enough currency to exchange. It is probably OK considering the users are not looking for big amount of exchange.
3. Cumbersome: If you want to exchange a big amount, you might need to deal with multiple people manually. This is probably OK assuming this is a rare case.
As for the implementation, it might be possible to start simple by using twitter and agreeing on a hashtag. Such as "#p2pexchange 50 $CAD to $NANO"