Small is beautiful

 

Not only the title of EF Schumacher’s, at the time, controversial look at modern day economics, it’s also what we believe when it comes to financial transactions.

The core of Schumacher’s argument back in the early 70s was that we were becoming over obsessed with ‘gigantism’, and that big was not always best.  So while we might dream big, the reality is that much of today’s business is driven by entrepreneurs and small to medium sized enterprises.   And for those starting out,  small transactions and the ability to make them quickly, can drive spontaneous sales and boost profits.

 

Whatever your business, entering credit card details and taking the hit of transaction fees for small sales is time consuming, costly and frustrating, not to say a drain on your profit margins.   That’s why there is a general  move towards driving down transaction costs through, for instance, the introduction of online apps targeting micro businesses,  which we welcome.  But even small percentage transaction fees add up if you are selling a small value, high volume service or product.  

 

A digital currency such as LEOcoin is ideally suited to processing micropayments because it’s already transaction free – which is why we are experiencing such an enthusiastic and positive response to LEOcoin  around the world.  We’re ahead of the wave folks – join the LEOcoin revolution!

An International Family

An International Family

One of the aspects of digital currencies we like most is how they break down barriers.   LEOcoin is a secure, transparent and easy way to do business with customers around the world.  Every day our list of merchants is growing as businesses globally recognise the benefits of this way of transacting.  We’ve  got motor dealers in Pakistan, language services in Japan, sculptors and artists in China and a trader of energy saving hardware in Germany.   You name it,  you can now probably find a LEOcoin merchant who can offer you the product or service you want.

One of our successful merchants is Boris Gregorc.  He’s CEO of the Slovenian transport and distribution companies Speed d.o.o. and Bomag d.o.o,  and he  is using the LEOxChange to grow online sales, particularly for Bomag which was founded in 2004 and imports German motorcycle and scooter tyres to Slovenia and Croatia, as well as fire wood and pallets across Austria, Germany, Hungary and Italy.

For someone trading across so many borders, LEOcoin is perfect to keep costs low and trading simple and reliable and we were delighted to meet Boris at our launches in London and Hong Kong and congratulate him on his success.

Whatever your business, we believe LEOcoin can help you grow it.

Let the numbers do the talking

Let the numbers do the talking

We already knew transaction fees were a major barrier to growth for small to medium sized enterprises seeking to trade internationally.  So we weren’t surprised when a survey we commissioned from YouGov in the UK confirmed it.  

Of those surveyed, almost 50% of small to medium sized enterprises in the UK who trade internationally said transaction fees were a key concern; and 43% who transacted using debit or credit cards were also worried about the associated costs.

That’s why digital currencies, and LEOcoin in particular, are proving particularly attractive to emerging start-ups and entrepreneurs - because there are no intermediaries charging commissions.  The numbers speak for themselves:  we’ve now got a staggering 150,000 entrepreneurs worldwide actively using LEOcoin and over 3,000 merchants around the world have agreed to accept LEOcoins as payment.

Our survey, which questioned  1,102 senior decision makers in UK SMEs (up to 249 employees), also revealed, however, that there was reluctance to using a digital currency . We believe that’s because, up until now, the complexity and inaccessibility of digital currencies has discouraged take up.

And that’s the opportunity for LEOcoin.  The gap between those businesses worried about transaction fees and yet reluctant to use a digital currency is the gap we believe LEOcoin will fill. It is designed to make life easier for entrepreneurs who want to trade internationally but have to put up with very high transaction costs. Our message to them and their customers is that there is a better way of doing business.  The LEOcoin way.

LEOxChange is open for business

What a whirlwind fortnight it has been.

 

Not only did we have our UK press launch in the Tower of London, a mere stone’s throw from the Royal Mint, but we have also officially started trading LEOCoin on our LEOxChange!

 

In a packed ballroom of the Hyatt Hotel in Hong Kong more than a dozen journalists from across China joined us, not to mention over a thousand LEO members, all eager to find out  more.

 

Coincidentally, our launch comes a matter of days after the UK Government announced its plans for regulating the digital currency sector.

 

Amidst all this activity, it felt like appropriate timing, to hear more about the Government’s planned direction of travel in this area.  LEO took part in this consultation, including meeting personally with the Treasury on the issue, as we believe that careful regulation is critical.

 

To summarise, the Government’s key announcements are:

 

·     an intention to apply  anti-money laundering regulation to digital currency exchanges in the UK (which LEOCoin has already registered for), to support innovation and prevent criminal use. There will be formal consultation on the proposed regulatory approach early in the next Parliament.

 

·         plans to work with the British Standards Institution (BSI) and the digital currency industry to develop voluntary standards for consumer protection.

 

·         a  new research initiative bringing together the Research Councils, Alan Turing Institute and Digital Catapult with industry in order to address the research opportunities and challenges for digital currency technology, as well as  increase research funding in this area by £10 million to support this.

 

The Government has  also announced that the Financial Conduct Authority’s ‘Project Innovate’ will work with HM Treasury and the Prudential Regulatory Authority to investigate the feasibility of developing a regulatory “sandbox” to allow financial services innovators to test ideas at an early stage without excessive regulation, but with the informed consent of consumers and proper risk management.   

 

 

A ‘sandbox’ approach is certainly what’s required in these early days. While we support regulation, over-zealous intervention runs the risk of dissolving the core benefits of digital currencies: privacy, security, low to no fees and free marketability.  In an extreme case, it could restrict legitimate business and create another black market.

 

The process is ongoing and we are continuing to actively engage; and now the currency is live we will be able to bring real world examples to the table!

 

 

LEOxChange launch dates announced

LEOxChange launches at the end of March and two very important dates to enter into your calendar right now are March 27^th for the London launch of LEOxChange and March 29^th for the Hong Kong launch of LEOxChange.  
Keep up to date on https://www.facebook.com/LEOcoin.org

What is a cryptocurrency and why you should know about them?

Cryptocurrencies were established in 2009 with the launch of Bitcoin, in response to individuals seeking increased anonymity and control around financial transactions. If you transact through a bank or other financial intuition, a whole range of people have access to this information. With cryptocurrencies, the only record of your finances, until you complete the transaction, is on an anonymous online ledger, accessed via a computer or smart device. There is no central body to authorise or track transactions – these tasks are carried out collectively by the digital currency network themselves. In effect, it’s a private currency, completely decentralised.

Despite a modestly paced entry into the marketplace, mainly due to the sophistication of the equipment required to trade in Bitcoins, there are now around 13.5m Bitcoins in circulation, being transacted by around 2.6m individuals in up to 100,000 transactions a day. It’s not unusual to now see signs in coffee shops and bars offering to trade in Bitcoin and you can even load up your smart phone or electronic wallet at Bitcoin ATMs in London, Bristol and Brighton.

Technology available to bring cryptocurrencies to a wider and more diverse audience, both users and merchants, is moving so fast that new generation of cryptocurrencies, such as LEOcoin, will be able to offer everyday users an even swifter, simpler and more streamlined service than their predecessors. Although you still need a computer or smart device to get involved in the digital currency world, you don’t need expensive add on equipment in order to get going.

Like any new development in society, crypotocurrencies won’t immediately appeal or be relevant to everyone. But rest assured, digital currency is here to stay so if you want to ‘ride the wave’ of the most exciting thing to have hit the financial markets in decades, seriously consider investing in a cryptocurrency.

The UK Government calls for information on cryptocurrencies

The UK Government calls for information on cryptocurrencies

LEOcoin recently contributed its thoughts to the Government’s ‘Call for Information’ on the proposed regulation of digital currencies, which closed on December 3rd 2014. The consultation received nearly a hundred responses which shows just how interested people are in the subject. Currently there are few regulations imposed on cryptocurrencies, other than standard money laundering regulations.

LEOcoin supports the development of steps that can be taken to create more confidence within the mainstream population. But overzealous intervention could dissolve the core benefits of cryptocurrencies, namely privacy, security, low to no fees and free marketability. In an extreme case, it could restrict legitimate business and create another black market.

The entire cryptocurrency ecosystem, both legal and otherwise, is evolving so quickly that legislators are now preparing to make rules for circumstances that have no precedent. Cryptocurrencies require a whole new way of thinking, and a much more flexible approach from governments. It is important to allow precedent to develop legally within the free market framework – rather than detour the course of cryptocurrencies in their infancy.

As we prepare for the public launch of LEOcoin in a couple of months’ time, we hope the UK will adopt a supportive and entrepreneurial mind-set or risk being left behind by other more progressive countries.