Elrond Network is a company developing blockchain-scale technology to onboard the next billion people in the global economy. Today, Elrond Network announced that Elrond Network of Capital Financial Services S.A. has been approved by the National Bank of Romania. Twispay operates under this brand. Twispay is licensed by the National Bank of Romania to offer electronic money and payment services in compliance with current legislation. Twispay also is a member principal of Visa (NYSE) (for issuing Visa card) and MasterCard (for issuing or acquiring MasterCard cards).

As a digital option to cash, electronic money (or e-money) is used for financial transactions. It can be used in areas like payments or ecommerce. Elrond is a company that combines regulated, proven value transfer technology with blockchain technology. This will enhance its utility as well as make it more cost-effective.

Elrond was able to make a bold strategic move and establish itself as a link between traditional finance, crypto, and traditional financial services when it announced its intent to acquire Twispay. Twispay is an institution that has the ability to operate in the whole EEA, which includes the European Union, Iceland Liechtenstein, Norway, and Liechtenstein.

Since the announcement in October 2021, the two parties have engaged in conversations with the National Bank of Romania, supported by financial and tax consultancy from Deloitte and legal assistance from Reff & Associates | Deloitte Legal. After several rounds of constructive discussions and a conclusion about blockchain technology’s important role in the evolution of finance, the National Bank of Romania has officially decided in favor of Elrond acquiring Twispay.

“This landmark decision from the Romanian Central Bank opens the door for EU citizens, and soon for everyone everywhere, to significantly benefit from value flowing with near-instant settlement times, at 100x fewer costs, with full transparency, and higher reliability.”
Beniamin Mincu and Elrond Network.

It comes as the EU Parliament attempts to curb the usage of Proof of Work networks that are too energy-intensive due to the impact they have on climate change. Elrond is maintaining its “carbon-negative” status by offsetting more CO2 than its already energy efficient network is accountable for.

E-money institutions have the rights to not only issue electronic money but also to make payments under the European Payment Services Directive 2 (PSD2). Moreover, the EU Commission’s proposed European Regulation on Markets in Crypto-assets stipulates that licensed e-money institutions will be entitled to issue stablecoins which can be offered to the public in the Union or admitted to trading on a trading platform for crypto-assets. Because crypto-assets (including stabilizecoins) are central to blockchain technology promotion throughout Europe, it is important that the Commission proposes regulation.

Elrond has the strategic advantage of being able to create a reliable infrastructure that will allow for new payment systems. They are faster, easier, less expensive, transparent and more accessible to everyone. The regulatory framework will also be used to explore other important uses cases, such as new stablecoins or crypto-enabled debit cards. Also, the benefits of DeFi and NFTs as well as Web3 technology that can improve trust and efficiency in existing financial systems will all be considered.

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