Litecoin’s founder Charlie Lee has taken to Reddit to explain Litecoin Foundation’s acquisition of a 10% stake in the small, private German bank WEG.
In his Reddit post, Lee first said: “please note that there is a difference between Litecoin and the Litecoin Foundation,” and went on to explain that buying Litecoin didn’t mean LTC owners were funding the Litecoin Foundation (LF). He also pointed out that LF didn’t pay any money for the stake in the bank –it is more of a barter deal for “ technical work and marketing support for TokenPay, eFin decentralized exchange, and integration with the bank.” Lee also announced that there is a plan for him to have a seat on the bank’s board.
What Lee was at pains to explain is that this partnership with TokenPay and its stake in the bank had the potential to expand cryptocurrency services. He said: “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. 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, but we definitely have a much higher chance of succeeding now that we own a stake in a bank with bank licenses.”
He is also optimistic that with a seat on the board he will have some influence over the future direction of the bank’s operations and the inclusion of cryptocurrency services. However, he also said that if the bank resisted this move, LF would still benefit financially from the deal. He also reminded Litecoin owners that LF effectively works for ‘free’ for Litecoin and is an ambassador for the cryptocurrency. LTC has gone up by 18% over the last week as a result of the latest positive turnaround in the overall crypto market.