As many of you may already know, the Litecoin Foundation recently acquired a 9.9% stake in WEG Bank, a small German bank with only a few branches to its name.
In that this stake also involves Tokenpay, which is a firm that seems to have the sole goal of ushering in the practice of normal, widespread usage of Crypto in fiat-based banks, the whole situation might end up being more than it seems.
Charlie Lee, the founder of Litecoin, seems to be one person who definitely agrees with this idea.
Reportedly, on Tuesday of this week, Lee posted on Reddit in an attempt to clarify the strategy behind the partnership. Most likely, a large part of his motivation for doing so did, in fact, stem from the skepticism that has arisen in the community, related to the Litecoin Foundation’s investment.
Inside of the post, the first point that he made was that the Litecoin Network and the Litecoin Foundation are two separate and distinct entities and what one does has little to no direct influence on what the other does, except in the case of affecting the value of Litecoin as an asset.
In other words, he stated directly that the Litecoin Foundation basically works for the Litecoin Network’s users for free in that its overall aim is to do whatever it can to increase the utility of, and therefore the value of, Litecoin.
Later, however, is where his major point on the subject of the strategy behind the acquisition appeared.
While admitting that there are still major hurdles to cross like receiving approval from important legacy financial systems like Visa and the Swift network, Lee seemed confident that Litecoin could lead the pack in terms of providing legal, reliable Crypto services through traditional banks.
With this in mind, one could say that the opposition to Lee and the Litecoin Foundation’s goals will always be there.
A major part of the Crypto community believes that the only way that Crypto can and should exist is in a decentralized fashion, which means that it must be independent from existing institutions.
On the other hand, Lee and the Litecoin Foundation have now cemented themselves as clear leaders of the pack in terms of pushing for cooperation with not only regulators but also banks, in connection with those who have already done so, like Coinbase.
In terms of the involvement of Tokenpay, Lee seems to be trying to minimize it, saying that he and the foundation have no intention of becoming directly involved in the company by purchasing any of its tokens.
Whatever the case, Tokenpay is involved in WEG bank, side by side with Litecoin and its effective governing body. Therefore, the success of such an endeavor depends on all three parties.
If Tokenpay incurs any controversy, so does Litecoin, and vice versa.
As the move pushes forward, all eyes will surely be on all three companies and every move that they continue to make.
By: BGN Editorial Staff