Finance

Bitcoin – The Future of Banking

Bitbond which is a very well known German bank has changed the method of transfer of loans. The bank is now using digital cash bitcoin for loan transfers saying that it is a more convenient as well as safer method for international transfers.

Bitbond was founded in the year 2013 and was licensed as a financial institution in 2016. The bank has given a large amount of loan to different small and big businesses until now. The report says that the bank has lent approximately 10 million to more than 2500 businesses or companies in just a few years. The bank is now making use of bitcoin for the international loans as well as fiat loan transfers.

Nowadays most of the world banks are using SWIFT network for the transfer of loans. However, the user may have to pay several fees for every transaction. Then there are fees for currency exchange by banks. So overall it is a very costly method.

Bitcoin loans make internal transaction cheaper and more efficient than the SWIFT network. Now the loan is transferred using the Bitcoin blockchain network and as soon as the transaction is processed the money gets converted into the home currency or country currency. The blockchain technology is extremely safe and the transfers can be made in just a few seconds without heavy fees involved.

But sometimes bitcoin transfer even suffers from long processing time and high fees. This can be made better with the implementation of the lightning network.

Bitcoin banking is the future of banking. It makes the international transaction a lot cheaper and faster. Bitcoin transfers require certain private sender codes and only after that the transaction is processed thus making it safer as well. However, this is not also 100% successful method at the moment but this can be made much more efficient.