When the Litecoin-TokenPay partnership was announced, it became a trending topic for the crypto world, which led to a number of questions and confusions. To clarify it all, Litecoin founder Charlie Lee has posted a long note on Reddit. While talking about it, Lee mentioned what can be the best-case scenarios of the partnership and what can be the worst-case ones.
He said that with this bank, they’ll be able to create and deliver crypto solutions such as debit cards, merchant processing, and other innovative solutions. However, he also admits that despite all this, success cannot be guaranteed.
He wrote, “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.”
Lee believes that with a seat on the board of the bank, he will have some influence in that direction. He further adds that even if it doesn’t increase the crypto adoption, they can financially benefit from it for having a stake in the bank.
He also highlighted the worst-case scenarios – if the partnership fails for some reason or the other. It would definitely impact the reputation of the Litecoin Foundation. However, there wouldn’t be any material impact or on the Litecoin network.
To explain it further, he said that just like Bitcoin doesn’t get affected by Bitcoin Foundation’s failures, Litecoin will not be affected by Litecoin Foundation’s failures. He concludes by saying that the reputation is important, and there’s no doubt about it but nothing successful ever happens without taking some risks. And, in this case they believe that the potential gains from the partnership will outweigh the risks.
Image via Shutterstock
Join our telegram group