Only the crypto party can escrow, something like this:
I found some dirty fiat and want to get rid of it, I post an ad one the pP2P-Board. “Buy 200 PRV for 100 USD” … someone is willing to trade, contacts me, we agree, the Crypto-Seller puts the 200 PRV in escrow, and provides me with the address, where to send Benny (100 USD). Once the letter is received, the recipient releases the 200 PRV …
To make sure that the letter is secure, it is insured and registered. The packing of the fiat in the envelop is video recorded and the unpacking as well, in case of dispute, these videos have to be provided.
The other way works correspondingly … post ad I give xyz PRV for abcd FIAT …
that would basically be it.
What localmonero also asks for from their active posting users, is a security deposit of I think at the moment min 3 XMR, something like this could be implemented as well, so you can not trade more value at a time as you have deposited securities and in case of misbehavior the security can be used to settle. But generally actors behave.
Let me know what you think …
Skål Freyr