The German digital bank Bitbond, whose services offers cryptocurrency loans to medium-sized companies and self-employed people, has recently announced that it will now support international loans via the Bitcoin (BTC) blockchain network. This project is implemented to avoid the use of the regular international financial communications network SWIFT.
Bitbond thought to use the market’s biggest cryptocurrency, the BTC, only to transfer credit funds faster because BTC will not be the crypto in which the loans will be offered not to alter the fiat currency value of the loan due to the volatility of the BTC.
Bitbond is still a medium-sized financial institution which managed only about 100 clients, who are mainly small firms and self-employed workers, which, typically, do not exceed revenues of $50,000 per year.
Bitbond’s idea not only includes cryptocurrency but also artificial intelligence to qualify borrowers. The “patented automatic learning algorithm” uses “alternative data” to give an eligibility score to the applicant, which may be based on his/her online transactions and/or sales on eBay, Amazon, money received/sent on Paypal, and further on.
Bitbond decided to offer international loans via the Bitcoin (BTC) blockchain
Cryptocurrency loans services are developing their space within the digital coin ecosystem. In fact, they are not only found in the Bitcoin (BTC) market, as initiatives such as ETHLend have emerged, dedicated to lending ETH, as well as fiat currency, through the Ethereum blockchain platform.
However, this method of financing for microentrepreneurs is still not well known, mainly because of the state of adoption of cryptocurrencies, along with the lack of clarity about the tax conditions for the lender involved in making loans in digital currencies.
Processing and receiving credit at a traditional banking institution is a process that can take weeks, a process that Radoslav Albrecht, the CEO and the founder of Bitbond, decided to leave behind by creating, a couple of years ago, a banking platform that would allow small and medium-size companies to receive cryptocurrency loans quickly and at low cost. Now, Bitbond is betting on carrying it out with international loans via the Bitcoin (BTC) blockchain network.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.