This German Bank Uses Bitcoin to Make Low-Cost Int’l Loan Payments

Bitbond, an online bank founded in Germany in 2013 by German Radoslav Albrecht, has found an innovative use case for bitcoin’s borderless nature: international loan payments.

It was the first to use bitcoin to transfer credit in currency internationally, not only as loan collateral, and it’s currently processing about $1 million in loan payments per month.

As the company explains on its 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.”

While many outsiders (and even hodlers) see bitcoin as only a highly speculative assetBitbond has found a business model that competes with traditional systems. Using bitcoin came as a smart move for Albrecht as an alternative to the Swift payment system, which is slower and more expensive.

“Traditional money transfers are relatively costly due to currency exchange fees, and can take up to a few days,” Albrecht told Reuters TV in his office in Berlin’s fashionable neighborhood Prenzlauer Berg. “With Bitbond, payments work independently of where customers are. Via internet it is very, very quick and the fees are low.” […]

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