Certified German Bank Transfers Loans with Bitcoin, Subverts SWIFT

One online bank in Germany is now using bitcoins for loan transfers.

Subverting SWIFT

Founded by German Radoslav Albrecht, Bitbond is an online bank which now affords its customers the ability to transfer loans internationally — specifically, by using Bitcoin.

The platform uses Bitcoin and other cryptocurrencies to subvert SWIFT — the self-proclaimed world’s leading provider of secure financial messaging services — by lending money around the world instantly and at virtually no cost. Albrecht explained to Reuters TV:

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.

What makes this service even more remarkable is the fact that Bitbond became an officially licensed bank in 2016.

How it Works

Bitbond works by letting clients hold their loans in Bitcoin or other cryptocurrencies for extremely short periods of time before they are exchanged back into the receiving countries’ native fiat currency. This method keeps exchange rates relatively fixed and prevents the cryptocurrency market’s infamous volatility from undermining the process…

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