LeisurePay Launches Low to No Cost Payment Solutions for Merchants
LeisurePay (LPY), the only wholly black-owned bank in America launches low-cost and no-cost banking and payment solutions for the minority-owned merchants. LeisurePay is a closed-loop blockchain ecosystem and it is set to play a leading role in the emerging $150 billion stablecoin market, as regulators continue to fiercely debate crypto’s potential impact on financial institutions and money generally.
New Digital Asset
Stablecoins are digital assets that should always be equal in value to a fiat currency like the US dollar. They’re a favorite of cryptocurrency traders and investors who want to buy and sell digital assets on exchanges at pace, without suffering any delays while waiting for funds held in a bank account to be transferred to the exchange via a wire payment or an automated clearinghouse.
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Stablecoin Regulation On the Agenda
The rise of LPY comes as there is a grave risk posed by stablecoins to the financial system. The group has cautioned that the instruments could trigger runs, as well as represent payment system risk and systemic risk. Stablecoins’ present market capitalization stands at over $155 million, but not all of that is fiat-backed, which could ultimately make it hard for banks to satisfy regulatory requirements.
FDIC-insured tokenized securities or deposits do not lock up any more liquidity than is stipulated by fractional reserve requirements. This is the reason, why they are seen as superior to crypto stablecoins, offering a more “realistic starting point” to creating a better type of money.
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As discussions continue, it emerged that an association of FDIC-insured US banks is planning to launch its own stablecoin via a consortium. The mooted stablecoin will run on the Provenance Blockchain. Another FDIC-insured, bank-backed stablecoin is planned for release in the late fourth quarter of 2022. This will use the LPY system (usually known for its use in decentralizing chargebacks using blockchain) for a safe and fair payment rail.
LeisurePay has a strong reputation for its low to no cost payment solutions. The only wholly-owned black bank, LeisurePay provides banking and payment processing options for over 1200 minority and women-owned businesses across the US today.
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