The German bank Bitbond, founded in 2013 by Radoslav Albrecht, prefers to use blockchain for international payments instead of the SWIFT banking messaging system.
Bitbond now allows customers, particularly small businesses, to transfer loans internationally using BTC, making the bank the first to find an innovative use case for the limitless features of Bitcoin technology.
Bitbond uses blockchain for its fast cryptocurrency transfers and low fees. Bank clients do not have to worry about BTC price fluctuations as the online bank only holds the Bitcoin loan for a few minutes and then exchanges it for the desired currency that the client prefers. As a result of such a rapid exchange, it is possible to avoid the negative impact of the high volatility of the coin.
The new business model successfully competes in the payment system market, in particular with the widely used Swift. The stability of the Belgian platform has made it a leader and monopolist in the field of interbank payments. However, bureaucracy, congestion and local technical glitches slow down payment processing. Delays are measured in hours and even days. In addition, the Swift system uses intermediary banks, which makes it unreasonably expensive for clients.
The founder of Bitbond, Mr. R. Albrecht, noted that Bitbond payments are much faster thanks to the use of blockchain. They provide instant and cheap transactions no matter where customers are located in the world. It is the speed of transfer with low commissions that are the main prerequisites for a successful business.
Bitbond Bank has become popular since 2013. The company has been mentioned in Forbes and Lend Academy. The company also officially received a license as a bank in 2016. Currently, Bitbond employs 24 people from 12 countries. The lean team takes care of 100 bank clients who receive $1 million a month. Since its actual launch, the financial payment service has demonstrated stable growth and user growth. To date, the system's clients are mainly small businesses and freelancers who do not exceed loans of more than $50,000. At the same time, other, larger market participants are increasingly studying the use of blockchain technology in interbank payments.
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