Internet Bank Bitbond, founded in Germany in 2013, Radoslaw Albrecht (Albrecht Radoslav), found an innovative use of bitcoin for international loan fees.
This Bank became the first to use bitcoin at the international level for transfer of credit means, not only as loan collateral. At present, it processes payments on loans totaling $1 million per month .
On the company’s website says:
“Thanks to the innovations in the field of payments and credit scoring Bitbond can realize financial integration worldwide. All payment transactions are conducted through Bitbond the bitcoin blockchain. Therefore, our service is available via the Internet worldwide and not depend on banks.”
Although many outside observers (and even the owners of cryptocurrency) I believe bitcoin is just a highly speculative asset, Bitbond found a business model that can compete with traditional systems. According to Radoslav Albrecht, bitcoin is a good alternative to more expensive and slow payment system Swift.
“Traditional remittances are expensive because of the fee for currency exchange and can take several days. With Bitbond customers can make their payments from anywhere. Using the Internet is much faster and cheaper,” said Albrecht in an interview with Reuters TV.
About the company wrote to Forbes and Lend Academy. In 2016 Bitbond was officially licensed as a Bank. The main part of the company’s customers are small businesses and freelancers, loans which do not exceed $50 000.
“Our main target borrowers are small businesses that operate within two or three years, and maybe longer, but can’t get financing from the Bank. Perhaps because they simply do not have access to a Bank account, or is this type of business which banks usually do not provide loans,” said Albrecht in an interview with Forbes.
It is worth noting that in Bitbond could avoid traditional problems related to high volatility of cryptocurrencies, because its customers own tokens for their loans for only a few seconds or minutes and then exchange them for the necessary Fiat currency.