Former president of PayPal, David Marcus, believes that global payments are still stuck in the “fax era,” while information transfer has advanced rapidly. Marcus, also the co-founder of Bitcoin Lightning-focused payment service Lightspark, discussed his views on the potential of Bitcoin’s Lightning network to revolutionize the cumbersome process of sending money across jurisdictions in an interview with CNBC.
Marcus pointed out that in today’s digital world, it is incredibly easy to communicate with someone using email or text, but the same level of convenience does not exist when it comes to transferring money globally. While sending an email or text is a matter of seconds, sending money internationally involves a slow and complex process.
He highlighted the lack of a universal protocol for transferring money over the internet, especially when dealing with non-U.S. residents. Marcus explained that if someone wanted to send money to someone in another country who is not using the same fintech apps, they would need to obtain the recipient’s bank account number and physically go to the local bank to make an international wire transfer. These transfers can be time-consuming and costly, with additional fees and restrictions, such as limited banking hours.
To address this issue, Marcus’s company, Lightspark, is focusing on leveraging the Bitcoin Lightning network. This network aims to provide a solution that enables faster and more efficient cross-border transactions. By utilizing Bitcoin’s settlement layer and Lightning’s real-time payment capabilities, Lightspark aims to enable cash finality at a low cost.
Marcus believes that Bitcoin Lightning will not be primarily used for everyday purchases but will instead revolutionize overseas transfers. He stated that Bitcoin will be instrumental in sending U.S. dollars to recipients who will ultimately receive it in the form of their local currency, such as the Japanese Yen or Euro, on the other side of the world.
The adoption of Bitcoin Lightning has the potential to disrupt traditional global payment systems, making cross-border transactions faster, cheaper, and more accessible to individuals and businesses worldwide. It could eliminate the need for intermediaries, such as banks, and remove the barriers that currently hinder efficient money transfers between different jurisdictions.
Lightspark and other companies working on Bitcoin Lightning solutions are actively seeking to revolutionize the global payments landscape. However, it remains to be seen how quickly and widely this technology will be adopted. The potential benefits of faster and cheaper global payments are significant, and as the world becomes more interconnected, the need for efficient cross-border transactions will continue to grow.
Overall, the realization of Marcus’s vision for Bitcoin Lightning has the potential to bring the global payments industry into the digital age, leaving the “fax era” behind and enabling seamless money transfers across jurisdictions. With ongoing advancements in blockchain technology, the future of global payments may finally catch up with the rapid pace at which information is shared in the digital age.
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