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Now Online Bank Uses Bitcoins to Transfer Loans Easily

Posted By:- Er.Aftab Alam

Now Online Bank in Germany Uses Bitcoins to Transfer Loans Easily

German Radoslav Albrecht has founded an online bank that allows clients to transfer loans anywhere in the world using Bitcoin. Bitbond uses cryptocurrencies like Bitcoin to bypass the Swift international transfer system to lend money across the globe rapidly and at low cost. This is first time & it's steps taken by German online bank. It will be worldwide soon.

"Traditional money transfers by bitcoin are relatively costly due to currency exchange fees, and can take up to a few days," Albrecht told Reuters TV in his office in Berlin's fashionable neighbourhood Prenzlauer Berg. "With Bitbond, payments work independently of where customers are. Via Internet it is very, very quick and the fees are low."Actually in few countries Bitcoin is banned but now it to be consider for all as soon as possible.

Clients hold the loans in digital tokens like Bitcoin only for seconds or minutes until they are exchanged back into the currency of the country where they wish to receive the funds, avoiding the cryptocurrencies' fluctuating exchange rates.

It is also important to mentioned here that Bitcoin has been used as collateral for loans, but never as a way of transferring credit in currency internationally.

Albrecht's service has been growing in popularity among clients since he launched the company in 2013. His office employs 24 people from 12 countries who manage loans for 100 clients amounting to around $1 million each month.

Most clients are small business owners or freelance workers, Albrecht says. Loans are relatively small and don't exceed $50,000. In 2016, Bitbond was officially licensed as a bank and has gained many investors since. Adoption of Bitcoin has been rapid in Germany. It trails only the US, according to Bitnodes, which tracks the location of all the Bitcoin nodes that transmit data about new transactions.

What is Bitcoin?

The word bitcoin first occurred and was defined in the white paper that was published on 31 October 2008. It is a compound of the words bit and coin.The white paper frequently uses the shorter coin.A type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Bitcoins are completely virtual coins designed to be ‘self-contained’ for their value, with no need for banks to move and store the money. Once you own bitcoins, they possess value and trade just as if they were nuggets of gold in your pocket. You can use your bitcoins to purchase goods and services online, or you can tuck them away and hope that their value increases over the years. Bitcoins are traded from one personal 'wallet' to another.

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