Iota, I am not against your purpose, but any argument against this? You have to admit, that this is a valid point of criticism.
You demand trust in this case. We all know that this is not that easy and not the crypto way.
Correct, it's possible to borrow 1 million BTC. Why anyone would give that much money without collateral for even higher amount is another question, act assuming that I do have 1'000'000 BTC.