The announcement of Elon Musk to suspend the acceptance of Bitcoin was a strong argument against means of payment which do not have an acceptance obligation included. This time the sudden interruption was triggered by the argument of the excessive energy consumption of the Bitcoin network, next time it might be for volatility reasons or sudden decrease of value of Bitcoin.
One of the advantages for a corporate currency based on the Leondrino Standard is that a company has to sign an acceptance obligation for its branded currency. Already with the switch of a branded currency to Leondrino Token Class D, a consumer or investor knows that the associated company signed a Leondrino Initial Contract and declared to accept its branded tokens in exchange for certain products and services of its brand in the future.
As soon as branded tokens are offered for sale via Leondrino, consumers and investors can be sure that the associated brand company signed a Leondrino Main Contract which includes the definition of all the major aspects of the token economy, such as token budgets and supply rules. Moreover, the rules for a potential withdrawal of a corporate currency from the market including potential migration paths and timing are also defined.
In addition to the acceptance obligation, we are working on the production preparation of the Leondrino MainNet together with partners. The Leondrino MainNet will be used as infrastructure for the highest Leondrino Token Classes B and A. To enable high volume and high-speed transactions with acceptable energy consumption and relatively stable and low transaction prices, we will stick to a consortium approach for the Leondrino MainNet as long as needed. Corporates cannot escape from their regulatory environment and do not want that the strength of their brand will lead to higher transaction costs and subsequently to higher operational costs.
So, thanks to Elon Musk for his abrupt decision to stop the acceptance of Bitcoin. It makes arguments for our Leondrino approach even stronger.
Best regards, Peter Reuschel