The banking adoption of the blockchain technology claims a victory in the recent approval of cryptocurrency by Bitbond to pay international loans.
The approach of Bitbond is to save their clients the lengthy process to make an international transfer, using bitcoin to produce a digital transfer from any place and then converting the bitcoin into any currency selected by the receiver.
“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,” Radoslav Albrecht, Bitbond’s founder, told Reuters.
Founded in 2013, in Berlin, Bitbond now employs 24 people in their central offices, managing loans for 100 people for up to $1 million each month. According to Reuters, most clients of Bitbond are small business owners or freelance workers with relatively small loans that don’t exceed 50,000 dollars.
In the recent past, Bitcoin has been used as collateral for some loans, but this is the first time that a licensed bank used Bitcoin as currency for its operation.
Critical to that is the fact that Bitbond assures their adopters that the volatile nature of Bitcoin is not a hazard for their operation because they only held the cryptocurrency for a short period and almost immediately is transformed in the regular currency of their choice.