New app lets customers transfer loans via Bitcoin

Bitbond, a German online bank that allows customers to transfer loans around the world using Bitcoin, officially launched. It was licensed as a bank in 2016 and has since gained many more investors.

Reuters, citing founder Radoslav Albrecht, reported that Bitbond uses cryptocurrencies like Bitcoin to bypass the Swift international transfer system in order to lend money around the world cheaply and in a shorter timeframe. According to the report, this is the first time that bitcoin has been used to transfer credit around the world.

“Traditional money transfers are relatively expensive due to currency exchange fees and can take up to a few days,” Albrecht told Reuters TV. “With Bitbond, payments work regardless of where customers are. Via the Internet it is very, very fast and the costs are low. “

Bitbond clients hold the loans in the form of digital tokens for a few seconds or minutes and then they are exchanged into the currency of the country where the person receives the funds. This avoids fluctuations in the price of cryptocurrencies. Most of the clients who use the service are small business owners and self-employed people with loans under $ 50,000. Reuters noted that the adoption of the cryptocurrency has been rapid in Germany, just behind the United States.

The price of bitcoin was under pressure late last week after news surfaced that authorities attacked South Korea’s largest crypto exchange, CNBC reported. UPbit wrote on its website, according to a Google translation, that it “is currently under investigation by the prosecution, and we are [cooperating] diligently. UPbit services, such as all transactions and withdrawals, are functioning normally. Your assets are kept safe in your account. “

Although South Korean officials raided the stock market over fears of fraud, the South Korean Financial Supervisory Service (FSS) did not immediately respond to a request for comment from CNBC. According to CoinMarketCap, the exchange is third (with fees) in terms of trading volume, with the EOS-won pair accounting for the largest share of volume.

Following the news, bitcoin fell 5.5% to just over $ 8,500. The price of Bitcoin was $ 8,649.16 at 12:50 p.m. Friday (May 11), according to CoinDesk. By comparison, the cryptocurrency’s value was around $ 7,600 in February, a level that represented a new two-month low. The drop came as global concerns were being felt over digital currency, mostly related to bans on bitcoin purchases imposed by banks.

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