Former PayPal president David Marcus believes the Bitcoin Lightning Network could streamline the intricate procedure of cross-border transfers.
The Lightning Network is designed to enhance BTC transactions. By making them more cost-effective, efficient, and suitable for small payments. It operates independently, processing BTC transactions before settling them on the primary Bitcoin blockchain.
While striving to advance global payments beyond the outdated “fax era,” Marcus expressed skepticism about BTC’s potential during a Sept. 11 CNBC Squawk Box interview. He wants it to become a widely adopted payment method.
"We're trying to turn #Bitcoin into a global payment network. There's no universal protocol for money on the internet that enables value to be transported," says @lightspark CEO @davidmarcus. "Our view is $BTC is not the currency people will use to buy things." pic.twitter.com/3fEBTzHxJS
— Squawk Box (@SquawkCNBC) September 11, 2023
Marcus elucidated that sending money to individuals outside the United States would entail acquiring their bank account details and incurring a $50 fee for an international transfer at a local bank. He emphasized the time constraints.
Bitcoin Lightning’s Dual Role
Marcus further explained that “a fraction of a Bitcoin on the Lightning Network can be likened to a small data packet on the internet, specifically designated for transferring value.”
This system enables users to send and receive any currency they desire, be it euros, dollars, yen, or others, at their convenience. He described Lightning as the intermediary “real-time,” “cost-effective,” and “definitive cash settlement” layer.
Nonetheless, the former president of PayPal believes that, ultimately, Bitcoin Lightning will find its primary utility in facilitating international transfers rather than everyday purchases.
Jack Mallers, the CEO of Strike, shares a similar outlook with the executive. Strike, a company utilizing the Lightning Network for cost-effective international currency transfers, offers its wallet application for lightning-based international remittances to 65 countries.
These include Ghana, Nigeria, and Argentina, where funds can be directly received in their local currency and into their bank accounts.
Increasing Adoption
The BTC Lightning Network’s adoption is already gaining steam, with Binance recently disclosing plans to incorporate the network for seamless deposits and withdrawals.
Moreover, as The Crypto Basic reported in December 2022, Strike announced that Africans could now receive quick and inexpensive remittances with its Send Globally feature, which uses the Bitcoin Lightning network.
Furthermore, in a case that demonstrated the network’s reliability and speed, CNBC leveraged Lightning last April to send Bitcoin to a Ukrainian resident in Poland who quickly cashed out the assets.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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