Online Bank in Germany using bitcoins for loan transfers

Bitbond is an online German bank which now allows its customers to transfer loans internationally using Bitcoin.

The online bank platform uses Bitcoin and other cryptocurrencies to subvert SWIFT. The SWIFT is a world’s leading provider of secure financial messaging services, by lending money around the globe with no cost virtually.

Albrecht, founder of Bitbond in an interview to Reuters TV:

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.

Working of Bitcoin with Loans:

Explanation by Bitcoinist.com:

Bitbond works by letting clients hold their loans in Bitcoin or other cryptocurrencies for extremely short periods of time before they are exchanged back into the receiving countries’ native fiat currency. This method keeps exchange rates relatively fixed and prevents the cryptocurrency market’s infamous volatility from undermining the process.

Source: bitcoinist.com

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