Bitcoin has a lot more advantages if you're talking about global loans.
You're able to make substantial savings on time, making instant global loans something that can be achieved (I don't know if the online bank that is mentioned here is doing that, however) since bitcoin is instant, and a huge advantage compared to the slow money transfer process that happens with the traditional banks. You're also saving on fees for exchanging forex as a business.
However, if it's just locally within Germany or any other country, I doubt that there would be that much of a niche market that has a demand for bitcoin payments to make it work. As I said, I am not sure exactly what the business model is for this particular bank, but there are definitely many scenarios where bitcoin can be useful to fund global loans.
Topic: German online bank uses Bitcoins to transfer loans - page 4. (Read 567 times)
BTC is legal in Germany, and Bitbond Bank's use of BTC to transfer money will attract more customers to use their online transfer system!
This is a bold innovation. The combination of BTC and the banking system has greatly simplified the transfer costs!
This is a bold innovation. The combination of BTC and the banking system has greatly simplified the transfer costs!
This is the first time the bank has used BTC to transfer money!
The advantages of fast BTC transfer speed and low transfer cost are reasonably utilized by the bank!
More Banks will use BTC to transfer money in the future!
The advantages of fast BTC transfer speed and low transfer cost are reasonably utilized by the bank!
More Banks will use BTC to transfer money in the future!
I would rather see bitcoin being used by online banks than ripple, you don't need lightning fast transactions for loans. Alternatively, there is an altcoin called SURETLY which specialises in P2P loans. Great price on hitBTC now.
Amazing! This and still people keep crying that why crypto currency and government is not having good relations. And they keep panicking whether bitcoin will exist tomorrow or not!
Lolz. Your post really made me think about the whole concept one more time. I mean with the increasing demand all the government will have to get their hands on the crypto currencies and they will surely use for such banking methods.
Today this is the great example that stuff like loan can be working model and so as to rest of the transactions too. Great share mate!
Lolz. Your post really made me think about the whole concept one more time. I mean with the increasing demand all the government will have to get their hands on the crypto currencies and they will surely use for such banking methods.
Today this is the great example that stuff like loan can be working model and so as to rest of the transactions too. Great share mate!
germany bank is using bitcoin for remittances and they are designing crypto specific coins in the market Germany is becoming the example for the crypto world
if a bank that receives a bitcoin transaction is good news, at least in one bank it has many branches that can be utilized for bitcoin transactions. soon another bank will follow.
Sounds great to hear and by reading the article it kinda makes me feel sad i guess. Since in our country our banks are not that very supportive in the idea of crypto currency, but deep down inside each one of us are hoping that someday the banks will probably accept this kind of transactions and will be sure in handy, to think that this will really boom the usage and popularity of bitcoin including the benefits of one's user that may get.
The German bank is seeing a vision where most of the banks are still in death lock towards bitcoin the future of money transfer through bitcoin and blockchain so after Japan now Germany is on forefront
The reason why some banks are looking at using blockchain technology because of the transfer fee and faster transaction. It is good that the German bank is using bitcoin as it utilized it as a currency instead of an asset. I hope that other banks would consider this option as this would benefit many people and companies. There is no problem with the fluctuation of price as they immediately convert it to its fiat value. However, I would assume that the banks would plan to benefit from the cryptocurrencies by creating their own so that they can still control its flow.
It is very feasible if borrowing in the field of cryptocurrency is facilitated by the Government. Because it also supports the country's economy and people's welfare in the country
German being one among the top player in the world in terms of technology making use of bitcoin within the bank transactions will truly attract more people towards bitcoin. Another thing this will be kept as a reference, and more banking network might adopt bitcoin into their business.
How are they processing the collateral? In terms of fiat or bitcoin? I am not sure if bitcoin is the right crypto for collateral. There are a few stable cryptos which would be helpful for collateral,as their volatility won't affect anything (I am not talking about tether,chill). But nevertheless,this is great. Colleges are accepting bitcoin,hotels are and now banks. Only thing,not everyone is rich enough or is in the min to use their bitcoin for these purposes,they see bitcoin as an asset ( a fictitious intangible non-current asset) and not as a currency.
Quote
BERLIN (Reuters) - 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.
“Traditional money transfers 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 neighborhood Prenzlauer Berg. “With Bitbond, payments work independently of where customers are. Via internet it is very, very quick and the fees are low.”
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 crypto currencies fluctuating exchange rates.
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 dollars. 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 U.S., according to Bitnodes, which tracks the location of all the Bitcoin nodes that transmit data about new transactions.
https://www.reuters.com/article/us-germany-bitcoin/german-online-bank-uses-bitcoins-to-transfer-loans-idUSKBN1ID07Y
Bitbond uses cryptocurrencies like Bitcoin to bypass the Swift international transfer system to lend money across the globe rapidly and at low cost.
“Traditional money transfers 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 neighborhood Prenzlauer Berg. “With Bitbond, payments work independently of where customers are. Via internet it is very, very quick and the fees are low.”
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 crypto currencies fluctuating exchange rates.
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 dollars. 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 U.S., according to Bitnodes, which tracks the location of all the Bitcoin nodes that transmit data about new transactions.
https://www.reuters.com/article/us-germany-bitcoin/german-online-bank-uses-bitcoins-to-transfer-loans-idUSKBN1ID07Y
One area bitcoin hasn't enjoyed much utilization is in loan markets. Many bitcoin loan based start ups had difficulties with lack of support in terms of collateral, background checks, creditchex and similar systems utilized by banks to streamline the loan process and make them more reliable. Looks like this small german bank has stepped in to fill the vacuum and it appears to be enjoying success.
Hopefully this will be an indication of future progress with crypto based loans and we'll see other start ups embrace this trend by offering greater support for this. It is possible their loan process carries a lot of scrutiny and it may be doubtful that crypto based loans will ever rival fiat loans in terms of convenience, rapid deployment or ease of use. As crypto loans become more prevalent we could see better frameworks and solutions to issues which have plagued the industry in the past and so perhaps this is a sign progress will be made.
I think that bitcoin loans make sense if it's cross border. If it's domestic, then it's more likely that fiat loans will still be used as long as the fiat banking system is still in existence, because it's just easier to sort out collateral, and the agreements f2f right now.
But the benefits of using bitcoin in funding international loans are obvious.
People with their economy in a state of collapse can get a loan this way from an online bank, using bitcoin as currency, if they are not able to get what they want from their banks. Plus, there is minimal fees and spreads compared foreign currency exchange, and settles instantly. The opportunities are really for the new companies to dig out right now.
I'm more surprised Bitbond was licensed as a bank lol. All the while I was reading the article, I was asking myself "How is this a bank?" But yeah, I suppose there are many different kinds with differing requirements depending on where you are.
Either way, I'm not surprised at all. Convenient cross-border transfers has always been one of Bitcoin's strongest use-cases, so it was only a matter of time until someone started something like this. Bitbond has already proven that it works, so I'd like to think it's also only a matter of time before the rest of the world follows. I hope they grow bigger and more successful.
Either way, I'm not surprised at all. Convenient cross-border transfers has always been one of Bitcoin's strongest use-cases, so it was only a matter of time until someone started something like this. Bitbond has already proven that it works, so I'd like to think it's also only a matter of time before the rest of the world follows. I hope they grow bigger and more successful.
I'm more amazed they are still around, they are no better than BTCJAM, and those
If I remember correctly one of the biggest default was around 10 000$, might be wrong because of the BTC/$ , and the guy was just trolling everybody showing that all the papers were fake..
It is good news, and it is proving that many banks are accepting Bitcoin around the world and used for payment and exchange transactions. You can imagine it being bought and sold continuously thanks to the big banks, which will help Bitcoin price go up very fast.
Great news, now in order to invest in bitcoin on the exchange, it is enough to take a Bank loan. And if the price falls, you can tell the Bank that there was a force majeure.
Other than that, these lending platforms eventually all seem to be doomed. I can't name up one lending platform that hasn't been hijacked by scammers, so I hope that Bitbond can be an exception here, but I'm not optimistic.
The difference in this case, which is a very important one, is that this isn't just one of the many services we have had in the same segment, but a professional financial service with all proper registrations and licenses. It's obviously not a guarantee that it won't become a scam circus later on, but due to regulatory pressure BitBond has to cut through all that nonsense and severely punish abusers.
What I like about this is that we have a whole ecosystem popping up working around Bitcoin, and that's exactly the utility value we want Bitcoin to have. Remember, this is just the beginning of everything, so there is plenty of more that we will be seeing in the forthcoming years. Bitcoin's network is by far the strongest and most secure network allowing these transactions to be conducted in the best possible way. Everything that contributes to Bitcoin's ecosystem and utility is more than welcome.
I'm more surprised Bitbond was licensed as a bank lol. All the while I was reading the article, I was asking myself "How is this a bank?" But yeah, I suppose there are many different kinds with differing requirements depending on where you are.
Either way, I'm not surprised at all. Convenient cross-border transfers has always been one of Bitcoin's strongest use-cases, so it was only a matter of time until someone started something like this. Bitbond has already proven that it works, so I'd like to think it's also only a matter of time before the rest of the world follows. I hope they grow bigger and more successful.
Either way, I'm not surprised at all. Convenient cross-border transfers has always been one of Bitcoin's strongest use-cases, so it was only a matter of time until someone started something like this. Bitbond has already proven that it works, so I'd like to think it's also only a matter of time before the rest of the world follows. I hope they grow bigger and more successful.
That is a good news. The more people using crypto currencies for their daily lives, the more people will demand for more crypto currency. The higher the demand the higher the price. This is a lesson for all of us, more and more people are being aware of crypto currencies now so we should hold on to our coins all the more.
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