Litecoin’s Lee: Bank Deal Might Lead to New Crypto Services
Litecoin creator Charlie Lee could be made a board member at the German bank the Litecoin Foundation – the group in which he serves as managing director – recently obtained a stake in.
The deal for a 9.9 percent stake in WEG Bank AG resulted through a partnership with the crypto startup TokenPay, as previously reported. And while the response on social media seems to have been mostly positive, Lee nonetheless took to Reddit on Tuesday to offer “clarifications” on the nature of the deal, the foundation’s involvement and what benefits the arrangement could bring.
According to Lee, that best-case scenario would see WEG Bank attempt to launch crypto products and services – but that’s not a done deal by any means, the litecoin creator conceded.
“Best case is that with this bank, we are able to create and deliver crypto solutions like debit cards, merchant processing, and other innovative solutions. However, even with a stake and influence at the bank, it’s not guaranteed that this will succeed.”
Lee also clarified that the deal didn’t see the foundation spend any money, saying that the stake came “in exchange for technical work and marketing support for TokenPay, eFin decentralized exchange, and integration with the bank.”
“To be clear, LF did not pay any money for this stake in the bank. The plan is also for me to get a board seat at the bank,” he explained.
Lee noted that there are still some obstacles to overcome in order to launch a crypto debit card, writing: “People have brought up valid concerns that we still need to work with and be approved by players in the current financial systems like Visa and SWIFT.”
That being said, owning a stake in a licensed bank gives the Litecoin Foundation “a much higher chance of succeeding.”
Litecoin image via Shutterstock
You may be interested
How Countries Can Develop Sovereign Crypto Economies Efficiently And Cost-Effectivelybtcethereumadmin - August 20, 2018
There are many countries today that still don’t have a currency of their own including Ecuador and Marshall Islands. Many…
VERSES Pioneers Global Augmented and Virtual Reality Economy Powered by Blockchain Technologybtcethereumadmin - August 20, 2018
VERSES has showcased its virtual and augmented reality protocols to power a new economy of tradable digital assets in the…
Bridging The Gap: Why More Brands Are Bringing Blockchain To The Loyalty Industrybtcethereumadmin - August 20, 2018
The underpinnings of loyalty rewards programs date as far back as 1793 when a merchant in the US began handing…