CEO of TokenPay Explains the Litecoin and WEG Bank Deal

We recently reported about the deal that TokenPay, a Litecoin partner made with Germany’s WEG Bank by acquiring 9.9 percent of the bank and the remaining 90 percent of the bank will be purchased but is pending regulatory approval.

Since then TokenPay has been receiving a lot of questions about the landmark deal. And so in a recent interview, Derek Capo, CEO of TokenPay went live to answer some of the questions and goes into detail about how they will be leveraging this deal to integrate cryptocurrencies with the day-to-day lives of the users of the bank and also enable the users to convert their crypto to fiat, and vice versa.

 

Partnership with Litecoin Foundation and Total Rebranding

To start off, after the new partnership with Litecoin, the company recently went through a total rebranding of TokenPay by releasing a new website that is already showcasing some of the products that they are currently working on.

The main product that they are currently focusing on is Merchant Services that they are planning to launch in August this year. This merchant services product will help businesses worldwide to start accepting cryptocurrencies as a valid method of payment. This can be a great replacement for Stripe since they stopped allowing merchants to accept cryptocurrencies as payment.

 

Allowing Merchants to Accept Cryptocurrency as a Payment

But as every merchant services product, it will depend on the laws in your country whether you will be able to accept cryptocurrency as a payment method or not. And if you can, you will then again have to ensure that you are following the law while converting cryptocurrency to fiat currency. Because right now, there are several countries like India that do not allow their citizens to convert fiat to crypto, or vice versa.

So you might be able to accept payments as crypto through the merchant services product, but you won’t be able to convert that into fiat currency.

But as of right now, WEG Bank is going through the regulatory process after which TokenPay will be able to integrate their services and allow the users of their bank to convert cryptocurrency to a list of fiat currencies that the bank will support.

 

Why Risk Your Coins When You Can Get a Certificate?

Another business that Capo addressed is Token Swiss, which is a regulated, registered broker and dealer. He did not mention exactly what functions that business will have once it is fully licensed. But as of right now, Token Swiss can issue certificates for the coins that a user purchases through them.

So how is this different and better than other exchanges like Coinbase or Binance where the users are essentially doing the same thing?

Capo gave a great example that differentiates Token Swiss from these cryptocurrency exchange giants.

So let’s say that you go to Binance and convert your fiat currency into bitcoin and then you receive your bitcoin. But with these exchanges, they are centralized and technically they have the ownership of the keys for that coin. Not only that, you also do not have any insurance behind that purchase. This means that just by using these centralized exchanges, you are taking a lot of risks.

According to Capo, there are a lot of retail investors that do not like the idea of having a bitcoin wallet on their computers or smartphones because that poses a potential risk of it crashing or someone stealing it from them. What they would rather have, is a certificate saying that they have rights to a certain amount of bitcoin. And that is where Token Swiss comes in the picture.

What they do is that they execute the certificate that is insured by companies that ensure that they have that amount of coins in their possession. And it is their responsibility to keep those coins safe and take any measures they would like to ensure that.

The minimum amount of cryptocurrency that someone can buy through Token Swiss is one million dollars.

Once someone makes the payment of one million dollars or more to Token Swiss to purchase bitcoin [we are considering bitcoin as an example here. Token Swiss can purchase any of the cryptocurrencies listed on the major crypto exchanges on your behalf]. Once they receive the payment and finalizes the prices, Token Swiss then goes out to the market and start buying the bitcoins.

So all you will have to do is make sure that the certificate is safe and that’s it. No need to worry about your wallet being hacked or anything. And you can also sleep peacefully at night knowing that you can cash in on your cryptocurrency at any time you want.

For this service, Token Swiss can charge a fee. They can charge an entry fee and an exit fee, a yearly fee, etc. Capo said that this is nothing out of the ordinary. In fact, these fees are charged by all the cryptocurrencies currently out there.

One of the drawbacks of purchasing a certificate instead of the cryptocurrency directly is that you won’t be able to trade them like you do through the crypto exchanges. At least not right now. Capo said that they will be integrating Token Swiss with eFin so that the users who choose to trade their cryptocurrency will be able to do so. That integration will be happening sometime next year. We do not have an exact date for that yet.

Another exciting this is that once that integration happens, you will also be able to purchase these certificates with your TokenPay coins as well.

 

eFin. More Secure than Binance and Coinbase

eFin is a decentralized exchange that TokenPay decided to create after seeing so many cryptocurrency exchanges getting hacked.

So how is eFin different than the other decentralized exchanges that already exist?

Well, according to Capo, eFin has a coin that they created to increase the motivation for people to use it. But he goes into detail about how eFin is much better than centralized exchanges like Coinbase and Binance.

The main difference is that with decentralized exchanges, the hackers will essentially have to hack every user’s computer, rather than hacking a handful of servers of centralized exchanges and stealing the coins. And Capo agrees that decentralized exchanges are a little bit slower compared to centralized exchanges. But the users need to know what they are sacrificing when they use centralized exchanges.

They are giving up the ownership of their coins, and the security of their accounts to get better speed. And with decentralized exchanges, they get ownership of the coins they are paying for, but they do that at a lower speed.

Capo says that in the beginning things will be slower compared to centralized exchanges, but as time goes on and they keep developing, the decentralized exchanges will get faster and at some point, they will end up offering the same processing speeds as centralized exchanges, but with greater security.

Overall, what we believe is that TokenPay is creating an ecosystem in which the users can use merchant payments to accept payments in cryptocurrency. And through the WEG Bank they can convert those cryptocurrencies into fiat currency. And if they choose to invest in crypto, they can do so through Token Swiss, and if they want to trade, they can do so through eFin.

Basically, they want to cover everything that a user would do related to cryptocurrency which is interesting because we have never seen someone attempt something like that.

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