German Radoslav Albrecht has established an online bank that enables customers to transfer loans anywhere in the world using Bitcoin.
Bitbond uses cryptocurrencies like Bitcoin to bypass the Swift international transfer system to lend money across the globe as fast as possible and at low cost, Reuters reported.
“Traditional money transfers are relatively costly due to currency exchange fees, and can take up to a few days,” said Albrecht.
“With Bitbond, payments work independently of where customers are. Via internet it is very, very quick and the fees are low,” he added to Reuters
Clients hold the loans in digital tokens like Bitcoin only for seconds or minutes until they are exchanged back into the currency of the country where they wish to receive the funds. By this, clients also avoid the crypto currencies fluctuating exchange rates.
Adoption of Bitcoin has been rapid in Germany has been fast in adopting Bitcoin and it only trails the US, according to Bitnodes.
According to Reuters, Bitnodes tracks the location of all the Bitcoin nodes that transmit data about new transactions.