Bitbond will replace the SWIFT network by Bitcoin as a method for the transfer of its international loans

in #bitcoin6 years ago

The online Bitbond German bank, modified the way in which it carried out the transactions of its international loans, changing to Bitcoin as a method to effect the sending of the funds.

The company that was launched in 2013 and was established as a financial institute in Germany in 2016, has provided e-commerce companies with loans of up to 50,000 euros, having granted more than 10 million euros in loans to 2,500 companies according to the figures contributed on your website.

According to Reuters information, Bitbond will now use Bitcoin's blockchain to make the transfers, leaving the borrower to make the conversion to the corresponding fiduciary currency once the amount is received.

What is sought with this decision is that the transfers of the loans are made much more quickly and economically than in the traditional way adopted by the same entities.

The SWIFT network is in charge of carrying out these transactions for the majority of banking entities, but despite this, it has some shortcomings such as the corresponding payment by users of a series of fees to banks for each transaction. through the network, as well as, fees for the conversion of the exchange rates in the currencies used.

SWIFT was a revolutionary network in terms of international transactions through its bank identification codes, which helped make them faster and safer. However, it should be noted that in reality SWIFT does not allow the transfer of money, but a secure connection for payment orders between banks.

In spite of the evolution that I mean for its moment, the blockchain technology that is being implemented today, is positioned as the best alternative and allows to improve in many ways the operations that normally make this type of institutions.

Finally, although adoption is increasing, Bitcoin and blockchain technology are still struggling with their own obstacles such as the cost of tariffs and the scalability of the protocol. However, they are problems that are already being maneuvered with initiatives such as SegWit and Lightning Network.

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