Bitcoin to modernize global payments, says former PayPal executive

Bitcoin to modernize global payments, says former PayPal executive

The Blockchain Industry Revolutionizing Global Payments

In today’s digital age, information can be easily transferred over the internet through emails or text messages. However, when it comes to global payments, the process remains cumbersome and outdated. This discrepancy has been compared to the difference between modern email communication and the outdated fax machine.

According to David Marcus, the former president of PayPal and co-founder of Bitcoin Lightning-focused payment service Lightspark, there is no universal protocol for transferring money globally. In a recent interview, Marcus expressed his belief that Bitcoin’s Lightning network has the potential to revolutionize this outdated system.

Marcus compares the ease of communication via email or text to the complicated process of sending money across different jurisdictions. While it is easy to contact someone through email or text, sending them money becomes significantly more difficult if they are not a US citizen using the same fintech app. This highlights the fact that we are still stuck in the “fax era” when it comes to global payments.

To illustrate the cumbersome nature of cross-border money transfers, Marcus gives an example of sending money to a non-US resident. In this scenario, obtaining the recipient’s bank account number is just the beginning. One would then need to physically go to the local bank and pay a hefty fee, often around $50, for an international wire transfer. And if it happens to be after 5 pm on a Friday, one is out of luck until the banks reopen on Monday.

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In an effort to address these challenges, Lightspark, the company Marcus co-founded in 2022, is now racing to solve this problem using the Bitcoin Lightning network. This network enables faster and more efficient transactions, making it an ideal solution for cross-border payments.

Marcus acknowledges that Bitcoin Lightning may not be predominantly used for everyday purchases. Instead, he envisions its main application in facilitating overseas transfers. The Lightning network is capable of converting Bitcoin into various currencies, such as Japanese Yen or Euro, making it easier for recipients on the other side of the world to receive funds in their local currency.

One of the key advantages of the Bitcoin Lightning network, according to Marcus, is its ability to provide cash finality at a very low cost. This means that transactions can be settled in real-time, eliminating the need for time-consuming and expensive intermediaries.

The blockchain industry, with its cutting-edge technology, has the potential to revolutionize the way we conduct global payments. By leveraging blockchain networks such as Bitcoin Lightning, we can move away from the outdated fax era and embrace a more efficient and seamless system. This transition will not only benefit individuals and businesses by making cross-border transactions faster and cheaper but also promote financial inclusion by providing access to financial services for underserved populations.

In conclusion, the blockchain industry is driving the transformation of global payments. The Bitcoin Lightning network, with its real-time and low-cost settlement capabilities, is poised to disrupt the traditional methods of cross-border money transfers. As the industry continues to innovate and develop new solutions, we can expect a future where global payments are as quick and easy as sending an email.

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