LEOcoin was launched last week in the UK and has become the world’s second largest digital currency after well-known and controversial cryptocurrency, Bitcoin.
Oxfordshire-based company, Learning Enterprises Organisation (LEO), which is known to provide learning services to businesses and occasionally host yoga sessions for company executives, launched their new currency at an event held at the Tower of London last Wednesday. Dan Andersson, co-founder of LEOcoin, announced that this was an “important chapter in the evolution of the global digital currency.”
On 2 April, LEOcoin’s own exchange will be opened in Hong Kong and from that date, the coin will be open to trade and will be recognised by other digital currency exchanges.
LEOcoin is a deflationary currency, which will only have 28,800 LEOcoins released per day with a total of 1bn LEOcoin in overall in circulation over 99 years and means that as the demand of this currency increases, the value of it will also in turn, increase.
The introduction of a new cryptocurrency suggests this sector is rapidly growing and the launch of LEOcoin coincides with plans announced last week by the government around their acceptance of cryptocurrencies in the UK and proposals to regulate the digital currency sector in the future.
Key features of LEOcoin have been outlined as:
Security – personal data and trading information is kept safe with the use of high level encryption systems when securing records and transactions.
Transparent Usage – full details of trades completed are visible on an online ledger and the bid, offer prices and quantities are displayed and can be easily understood.
Instant – no intermediaries are present when setting bid and offer prices or volume as there is direct trading between LEOxChange members.
Zero Commission – no commission on transaction fees on purchases, but a small commission exists on sales.
Atif Kamran (co-founder of LEOcoin) and Andersson are in the process of expanding their merchant base on and offline which will enable businesses around the world to accept LEOcoin for services and goods. The company said that currently, 100,000 entrepreneurs are using the currency.
Kamran states that digital currencies are the “evolution of money,” however there are some drawbacks to the use of this form of payment, as was outlined in a recent YouGov survey that LEOcoin commissioned to poll 1,000 senior decision-makers from small to medium businesses (SMEs), which revealed that 70% of respondents were “not at all likely” to accept payment in digital form.
The survey also identified that international transaction fees are a problem for 50% of SMEs and cost was also a worry for 43% of merchants who made debit or credit card transactions.
According to Andersson who commented on the survey results: “Whilst SMEs find transaction fees a concern when doing business abroad, 85% indicated they were unlikely to use a digital currency. Also it revealed that whilst awareness is very high at some 86%, only two percent already accept a digital currency.”
Although LEOcoin is rivalled by Bitcoin, Andersson is adamant that both digital currencies will coexist, regardless of the fact that LEOcoin is created with newer technology.
Bitcoin is a cryptocurrency that has also suffered from negativity by some organisations due to its unstable nature and risks that are posed for the financial system because no central bank issues it. Even though Bitcoin is popular, according to coinmetrics.com credit card transactions are still the most used form of payment and Western Union and PayPal still remain the most popular payment method.
In addition to Bitcoin, other ‘altcoins’ have appeared, such as Dogecoin that originated from an internet meme in 2013, but according to coinmarketcap.com is now the sixth largest digital currency when it comes to market capitalisation.
Jon Matonis, a founding director of the Bitcoin Foundation, an organisation aimed at promoting the cryptocurrency, is unsure about new emerging altcoins and believes the “computational power and strength of the network” is most important.
Industry experts believe that a multitude of emerging cryptocurrencies could become a problem, but LEOcoin promises to be easy to use, secure and to charge zero commission on transactions, meaning it could become the leading digital currency and according to Matonis, one that focuses on good computational power and a strong network.