Berlin, Germany –Radoslav Albrecht has established Bitbond, an online bank that enables clients transfer loans anywhere around the world with Bitcoin.
Bitbond uses cryptocurrencies to circumvent the Swift international transfer system and allow money lending across the globe in a faster and more affordable manner.
“Traditional money transfers are relatively costly due to currency exchange fees, and can take up to a few days,” Albrecht said in an interview with Reuters TV. “With Bitbond, payments work independently of where customers are. Via Internet it is very, very quick and the fees are low,” he added.
The clients will store the loans in digital tokens like Bitcoin or Ether only for a few seconds or minutes until they are exchanged back into the currency of the country from which they wish to receive funds, thereby avoiding the fluctuating exchange rates commonly observed among cryptocurrencies.
Albrecht’s service, Bitbond, has been growing in popularity since it was launched in 2013. His office employs 24 people from 12 countries who handle loans for clients for a total of $1 million every month.
Most of Bitbond’s clients are small business owners or freelance workers. The loans they get are rather small and do not go beyond $50,000 USD. Bitbond was officially licensed as a bank in 2016 and it has gained more investors ever since.