Virtual currencies have been expanding all over the world and the society is adopting them every single day. Indeed, they have the power to change traditional financial systems and make them work better. Bitbond, a German online bank will be replacing the SWIFT system for Bitcoin.
Bitbond Uses Bitcoin for International Transactions
At the moment, SWIFT is the most important payment processor for banks all over the world, but it is not as safe as Bitcoin. Indeed, in the last years, several hackers attacked banks and deposits in fiat currencies. But one of the main problems of the system, is that it takes hours and days to complete a simple transaction between banks.
This is why, the bank Bitbond, has decided to use Bitcoin in order to reduce transaction times, and fees associated with the SWIFT platform. During an interview with Reuters TV, Radoslav Albrecht, founder of Bitbond commented:
“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.”
Bitbond has been launched back in 2013, and started to gain popularity during the last years. The bank gives work to 24 individuals from 12 different countries. Moreover, the institution ins handling over $1 million in loans per months and they work with over 100 clients form different places.
Bitcoin Can Help Traditional Financial Institutions
There are several important figures that attack cryptocurrencies because of the fact that they are a real competitor for the banking industry. That’s the truth, Bitcoin and virtual currencies can completely re-shape the financial system. The challenge for these financial institutions is whether they will be able or not to adopt these new technologies, invest in them, or lose part of the market.
According to Morgan Stanley, Bitcoin and digital currencies could reduce the impact of an important financial crisis. How would it work? Well, Bitcoin would let banks to cut interest rates substantially.
The team in charge of the report explains:
“Freely circulating paper notes and coins (cash) limits the ability of the central banks to force negative deposit rates. A digital version of cash could theoretically allow negative deposit rates to be charged on all money in circulation within any economy.”
This could help banks to mitigate the impact of financial crisis. Bitcoin is changing the way people and financial institutions work, and banks are already knowing it. It depends on them whether they want to keep updated or behind the new trends in the market.
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