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Litecoin remained silent for a long time. In fact, when the US SEC considered Bitcoin and Ethereum not as titles. As for the other altcoins like Litecoin and Ripple, these cryptocurrencies are still in limbo. Kyle Samani, co-founder and managing partner of Multicoin, thinks that Litecoin does not even have a reason to exist considering that it is a fork of Bitcoin. However, recent developments may have turned the Litecoin scenario upside down.
Charlie Lee's Litecoin was able to acquire a German bank. And so far, this has been the most significant move on the journey of cryptocurrency towards mass adoption. This development deserves to be discussed because it can be transformative in the world of finance.
In April, Charlie Lee was exchanging discussions with Derek Chief, CEO of the TokenPay payment processor on Twitter. Their exchange quickly turned into a friendly exchange of direct messages. Both realized that the world is dealing with a problem in the banking sector.
Both Litecoin and TokenPay both encountered problems when it came to protecting bank accounts. According to Lee, "We had many problems" related to the banking sector. Chief said that "Some banks close bank accounts if they have something in common with cryptography.We have seen many competitors with similar offers cut off because they did not own the bank and did not have control".
Instead of working with the banks, Chief decided to buy a bank. He believes that this could potentially solve the problem that Litecoin and TokenPay were facing. Chief said that "why do not we talk about having a Litecoin debit card in order to have a real solution?". He also added that "because, you know, they had tried very hard to get a Litecoin debit card … I said, why do not we talk?".
And the rest was history. Litecoin was able to obtain 9.9 {4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} from WEG Bank AG. Another thing is that Litecoin has not really bought their share. TokenPay has previously acquired participation and has decided to offer 9.9 percent to Litecoin. This was the maximum allowed by German regulations that do not require regulatory requirements.
Future of Litecoin
What exactly does Litecoin mean at this point? If everything goes according to plan, it means that Litecoin and TokenPay now have a reliable banking partner that can help spread the use of blockchain among consumers all over the world.
However, this does not mean that Litecoin has solved the entire banking sector of the cryptocurrency problem. There will still be regulatory obstacles that still need to be resolved. First of all, the conversion between fiat and crypto will be a problem.
Traders are also concerned about accepting cryptocurrencies mainly due to price volatility. Many companies use the payment processor like BitPay to convert cryptocurrencies into fiat. And, unfortunately, it also incurs tax processing.
That is why Chief wants to provide an encrypted debit card with the possibility of converting Litecoin into euros through a traditional bank account. And this could be the answer to the crypt that users do not see the time to do. Lee said that "Connecting cryptocurrency to fiat rais is very useful". He also added that "we will have a say in influencing the bank to work on cryptographic projects".
