German online bank Bitbond uses Bitcoin to transfer loans

Tinuku - German online bank uses Bitcoin to transfer loans. Bitbond.com founded by Radoslav Albrecht in 2013 in Berlin allows customers to transfer loans anywhere in the world using Bitcoin. Cryptocurrency passes Swift's international transfer system to lend money worldwide quickly and at low cost.

"Traditional money transfers are very expensive because of the cost of currency exchange and take up to several days. Bitbond works independently where customers are, very fast and low cost," said Albrecht.

Clients hold loans in virtual tokens like Bitcoin in just seconds or minutes until they are switched back to the currency of the country where they want to receive funds to avoid crypto currencies fluctuating exchange rates. Bitcoin has been used as collateral for loans, but so far it has never been as a way of transferring credit in international currency.

Bitbond services have become increasingly popular among clients. The office employs 24 people from 12 countries that manage loans for 100 clients of US$1 million each month. Albrecht says most clients are small business owners or freelance workers for loans not exceeding US$50,000.