Certified German Bank Transfers Loans with Bitcoin, Subverts SWIFT
One online bank in Germany is now using bitcoins for loan transfers.
Subverting SWIFT
Founded by German Radoslav Albrecht, Bitbond is an online bank which now affords its customers the ability to transfer loans internationally — specifically, by using bitcoin.
The platform uses bitcoin and other cryptocurrencies to subvert SWIFT — the self-proclaimed world’s leading provider of secure financial messaging services — by lending money around the world instantly and at virtually no cost. Albrecht to Reuters TV:
Traditional money transfers are relatively costly due to currency exchange fees, and can take up to a few days. With Bitbond, payments work independently of where customers are. Via internet it is very, very quick and the fees are low.
What makes this service even more remarkable is the fact that Bitbond became an officially licensed bank in 2016.
How it Works
Bitbond works by letting clients hold their loans in bitcoin or other cryptocurrencies for extremely short periods of time before they are exchanged back into the receiving countries’ native fiat currency. This method keeps exchange rates relatively fixed and prevents the cryptocurrency market’s infamous volatility from undermining the process.
As noted by Reuters, this isn’t the first time bitcoin has been used as loan collateral. However, Bitbond is reportedly the first to offer the transfer of credit in currency internationally. As such, the company has become increasingly popular since it originally launched in 2013 — currently managing 100 clients’ loans for a rough total of $1 million each month.
The majority of said clients, Albrecht told Reuters, are small business owners or freelance workers, while the loans are less than $50,000 each.
Germany Loves bitcoin
As a side note, Germans have been particularly keen on adopting bitcoin. According to Bitnodes, Germany has the bitcoin nodes in the world — behind only the U.S.
However, authorities in the European country haven’t historically been too keen on cryptocurrency. In February, interim German Finance Minister Peter Altmaier to fellow G20 finance ministers, in which he claimed cryptocurrencies are not only risky for investors but also threaten long-term global financial stability.
Nevertheless, Germany did join 21 of its European neighbors in signing a on April 10.
What do you think about a certified online bank subverting SWIFT by sending loans internationally with bitcoin and other cryptocurrencies? Let us know in the comments below!
Images courtesy of SWIFT, Shutterstock
Published at Sun, 13 May 2018 03:00:52 +0000
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Alex Tapscott’s Nextblock Global Receives Major Backlash Prior to Public Offering
Things have gone from bad to worse for Alex Tapscott this past week. Several of his projects have received a lot of scrutiny. Moreover, there are some allegations which have to be rectified as well. Nextblock Global, the company owned by Alex Tapscott, will invest in companies and projects focusing on ICOs. However, the list of advisors for this company is mostly fake. Not a big surprise, but it is still rather worrisome.
Most people in the cryptocurrency world know the name He is a well-known author and Canadian investors. However, his latest business venture raises than answers. Nextblock Global is a very dubious business model, to say the least. Not because of the investing angle, but everything else about it seems pretty fake. Especially the list of alleged advisors contains names which aren’t even associated with this venture.
Trouble Ahead for Nextblock Global
Some of those names include and Dmitry Buterin. It is unclear why their names are on the list of advisors, to begin with. Neither of these gentlemen is even remotely connected to this new venture. There are some other names on the page which may also be completely fake, including Vinny Lingham and Kathryn Haun. It is disconcerting to see these names listed on a site they don’t even want to be associated with. It is a common tactic among semi-scammy ICO ventures, though.
The big question is why Alex Tapscott made such a grave mistake. It is evident these names were included to make the company more legitimate. However, it is unclear if this is his doing or someone else’s. The official explanation is how they were “listed in a draft version”. Even so, these names shouldn’t be there unless they agree to be a part of it. A weak explanation, to say the very least. This doesn’t bode well for the future of either.
It is evident this whole ordeal will cause a lot of heated debate. The Canadian Imperial Bank of Commerce has rebuked its underwriting of the Nextblock Global public offering. This is the only logical decision as long as these “issues” are still being discussed. It is a very strange and potentially unfortunate turn of events. Whether or not there was any foul play involved, will always remain a question. It won’t do the reputation of Alex Tapscott any favors either right now. Then again, if this is an error, it should all blow over pretty soon.
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