Longtime Bitcoin proponents have consistently touted the peer-to-peer money transfer capability that Bitcoin provides, irrespective of national borders. By contrast, the traditional banking system has a myriad of rules for sending money across national lines, with some international transaction requiring as much as 2 to 3 weeks. German entrepreneur Radoslav Albrecht has developed an innovative way to use Bitcoin to bypass SWIFT:
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.