Bitcoin, Cryptocurrency And Blockchain News

Bitbond Uses Blockchain for Low-Cost International Lending


A German company is using Bitcoin and blockchain to make international lending fast, cheap and easy. Bitbond, fronted by Radoslav Albrecht, is offering a range of loan opportunities aimed at small businesses in a growing number of countries around the world. By using Bitcoin and blockchain, the SWIFT system can be bypassed, meaning that loans are cheaper and easier to access. And would-be investors can pick the loans they would like to invest in and earn up to 13% interest on their lending.

Alternative Credit Scoring

The credit scoring system that is used by most large organizations (such as banks) causes a lot of issues for a great many people looking to access credit, often due in part to the fact that the criteria for passing credit checks are difficult to pass, or even not applicable. Bitbond, though, is able to use blockchain for more inventive data collection, combined with a machine-learning algorithm that completes credit scoring while learning and evolving all the while. Small businesses can, for example, point to their user accounts with platforms like PayPal, Shopify or Etsy as evidence of their status as a low-risk loan customer.

Loans are currently available for short-term borrowing – as short as a few weeks – up to several years, and are aimed at smaller amounts; typically up to $50,000. And Bitbond are growing, looking to create loan portfolios in an increasing number of countries to spread the word; that they’re one of the first companies leveraging the flexibility and speed of blockchain to make loans easier for those who need them.