One of the most popular and relatively new online banks in Germany, Bitbond, has recently found a use case for Bitcoin’s borderless nature. We are talking about international loan payments – which are the perfect way to use Bitcoin’s tech in order to transfer credit in currency all around the globe.
Founded in 2013 by Radoslav Albrecht, the bank has been operating for five years and constantly innovating. Currently, the bank is processing around $1 million in loan payments per months. As they explained on their website:
“By innovating in the fields of payments and credit scoring, Bitbond makes financial inclusion a reality around the world. All payment transactions on Bitbond are conducted via the bitcoin blockchain. Therefore our service is available worldwide via the internet and is independent of banks.”
Even though Bitcoin is seen as only a highly speculative asset recently, Bitbond seems to have found a business model that aligns with its traditional systems. Using the largest cryptocurrency also comes as a smart move for Albrecht and the perfect alternative to the Swift payment system (which is used internationally) that is slower and more expensive.
According to Albrecht:
“Traditional money transfers are relatively costly due to currency exchange fees, and can take up to a few days. With Bitbond, payments work independently of where customers are. Via internet it is very, very quick and the fees are low.”
The only downside at this point for Albrecht is Bitcoin’s volatility. Still, the good side is that Bitbond adopts Bitcoin’s model in which payments work independently of where customers are, via Internet where the fees are low and things are quick.
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