This Monday, Litecoin (LTC) confirmed the acquiring of 9.9% of a German Bank with the option to buy an extra 75% of the bank in future. The partnership which is facilitated by the TokenPay Swiss AG, a company that had already purchased the bank looks to have breathed a new life to LTC’s prospects to be the best payment option in the world. The story of the partnership started off in an unfamiliar way as the Litecoin founder and TokenPay CEO has an exchange of words over Twitter.
Back in April, a small Twitter ‘argument’ over the partnership of Verge and Mindgeek Inc., the parent company of Pornhub may have led to one of the largest partnerships yet to be seen in cryptocurrency field. Charlie Lee, founder of Litecoin (LTC), had a row with Derek Capo, CEO of TokenPay on the Verge partnership. The argument was however quelled by the mature approach taken by both CEOs ending with Charlie signing a non-disclosure agreement (NDA) with the TokenPay.
“So when do you want to talk about a REAL debit card solution? We are buying 9.9% of a bank in Munich with option to buy 90%. We have a whole ecosystem and plan in place. Let me know how we can work together. The battle between old and new world is just getting started”
-Derek, CEO, TokenPay.
The two companies have announced a strategic partnership that will see TokenPay Swiss AG relinquish the 9.9% of WEG Bank AG in Germany to Litecoin Foundation. At the start of the process of acquiring the bank, TokenPay promised the release of debit cards to its users to ease out payment using TPAY cryptocurrency. However, with this recent strategic partnership in place Litecoin will be tasked with providing high-level blockchain mechanization capabilities while TokenPay works on strategic marketing, blockchain technology, and sourcing a logistics partner.
The uplifting news however did not have the full support of all LTC enthusiasts as the question of a cryptocurrency partnering with a bank seeming rather foreign. The question of centralization came up a couple of time with users left confused at the nature of the partnership.
“Why should a decentralized economy partner with the centralized institution (referring to the WEG Bank AG)?”- One of the questions asked on Twitter by a Litecoin enthusiast.
This type of question were bound to come up with the very expectation that the decentralized nature of cryptocurrency will be undermined by partnering with the bank. On the report released by Litecoin Foundation, the reason for the partnership is to bridge the gap currently seen between the fiat world and cryptocurrency world.
“We see this partnership as a significant step forward for both Litecoin and TokenPay. At a high level, it will provide a gateway between traditional banking services and cryptocurrencies that can offer a much smoother experience for crypto users transacting in a fiat-dominated economy.”
After the noises of decentralization and banks die down is when people will realize the partnership is actually a blessing in disguise. This is similar to the Verge partnership conundrum with Pornhub. A partnership that started with tension may well be lining up to take the world by storm.
Further communication on the partnership will be offered by the respective communication teams. Catch all the information as it unfolds here.