Why Litecoin Creator Charlie Lee Is Buying into a Bank
July 19, 2018 8:21 am,
Most unusual and potentially transformative deals in the cryptocurrency space started as an argument on social media. The Litecoin Foundation, the non-profit exchange that promotes the sixth-largest cryptocurrency and where Charlie Lee is a managing director of Litecoin, and Capo’s Virgin Islands-based start-up had encountered difficulty securing bank accounts – a longstanding problem for the industry. “We had lots of trouble” on that front, Charlie Lee told this to a local newspaper.
Capo then explained, “Some banks, they close down bank accounts if they get a whiff of anything to do with crypto. We have seen a lot of competitors with similar offerings get cut off because they didn’t own the bank and they didn’t have control over it.” But Capo was actually working on a solution for TokenPay by trying to buy a bank. And he realized this plan, if successful, could address another problem for Charlie Lee.
“Why don’t we talk about having a litecoin debit card so that we can get a real solution?” Capo recalled telling Charlie Lee. “Because, you know, they had been trying very hard to have a litecoin debit card Capo said, why don’t we talk?”
And after this, it how the Singapore-based Litecoin Foundation Charlie Lee ended up owning 9.9 percent of WEG Bank AG, an until-now obscure German financial institution, in a surprise transaction revealed this week.
The foundation didn’t put money in; TokenPay previously acquired the stake and traded it to the non-profit in exchange for future technical support. TokenPay also acquired another 9.9 percent of the stake (the maximum allowed in Germany without prior regulatory approval) of WEG and it is waiting for the green light to buy up to 80 percent. (The price of it was not disclosed.)
If all goes according to plan, not only will TokenPay and Charlie Lee, Litecoin Foundation have a reliable banking partner, but they would also transform WEG into a ramp for consumers worldwide who wants to trade can trade fiat for cryptocurrency or pay for goods and services with crypto.