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Litecoin: Has Just Bought Into A Bank

Samantha Mitchell

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Litecoin Surprises All

1

In a slightly unexpected move, it has just been announced that Cryptocurrency Litecoin has purchased a few stakes in a non Cryptocurrency bank. Not really the news that one would expect but then when is the Cryptocurrency industry ever predictable? And as always, the announcement has provided the usual very divided two sides of the fence with two very opposing but strong views. There was also a third side this time however – which is pretty rare – and that was of utter shock that something like this had actually happened.

The stakes were bought by the non profit foundation that is the software brain behind the Cryptocurrency – the Litecoin Foundation. The team are responsible for the code work of Litecoin and in their wisdom thought it a good investment to purchase 10% of a bank. There is also a further amount invested, the details of which have not been released. Said bank is German operation WEG Bank AG. The bank specializes in real-estate and providing financial services to these customers in particular.

Who Are TokenPay

The agreement was made using a company named TokenPay which of course is involved in the Cryptocurrency industry and offers payment conversions from Cryptocurrencies to fiat. The deal is seen as a win win for both parties. The bank can secure knowledge and experience in the Cryptocurrency industry which can be passed down to its customers providing them with additional and new digital economy products. The bank will also be able to offer customers faster transactions with much lower transaction fees through the Blockchain technology that TokenPay can supply. In return, the Cryptocurrency has the option to purchase the bank as a whole if the German authorities are happy with this.The monies required for this particular project derive from a December 2017 token sale.

TokenPay has been around for three years now and designed its own Blockchain procedures as well as token – TPAY. The aim behind the launch was to do exactly what it has just done with Litecoin – provide a service to be able to convert Cryptocurrencies into fiat whenever required for such agreements. The beauty of TPAY is that it is scalable which is great for the future of the financial industry.2

What Will Happen

It has led many in the Cryptocurrency world wondering whether this is the start of things to come with the Cryptocurrency industry now and whether more banks are now going to be purchased. However in the grand scheme of things basically all that has happened is that Litecoin has bought a small bank in Germany. It is by no means a large financial institution which will be industry changing. The other thing to consider is that Litecoin didn’t actually do all of the work – TokenPay was heavily involved in this new development.

As highlighted earlier, the reactions to the news have been very mixed with some wondering what the thought process behind this decision by Litecoin was. Others seem disappointed that the choice seems to have taken the Cryptocurrency industry in the wrong direction. But as always when something new is tried and tested, there are many views and opinions flying about. It remains to be seen as to whether this is a good move or not, but time will surely tell.3

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