Former PayPal president, David Marcus, has raised concerns about the outdated nature of global payments despite the ease of transferring information online.
He argues that while we can send emails or texts instantaneously, international money transfers remain stuck in the “fax era.”
According to Marcus, the lack of a universal protocol for online money transfers poses a significant challenge.
If you want to communicate with someone, you can simply ask for their email address and connect with them within minutes.
However, when it comes to sending money, the process is far from seamless. Marcus illustrated this by highlighting the difficulty of sending money to someone outside the U.S. who doesn’t use the same fintech apps.
In such cases, one would need the recipient’s bank account number and often resort to expensive international wire transfers costing as much as $50.
To address this issue, Marcus is leading the charge with his Bitcoin Lightning-focused payment service, Lightspark, which he co-founded in May 2022.
He believes that the Bitcoin Lightning Network has the potential to revolutionize the cumbersome process of sending money across borders.
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While Marcus acknowledges that Bitcoin’s Lightning Network may not become the go-to currency for everyday purchases, he sees its primary utility in facilitating international transfers.
Rather than being used for buying goods and services directly, Bitcoin could serve as a bridge currency, allowing users to send U.S. dollars that are seamlessly converted into other currencies, such as Japanese yen or euros, on the recipient’s end.
The key advantage of this approach is the speed and cost-effectiveness of Bitcoin Lightning’s settlement layer.
It enables near-instantaneous and low-cost cash finality, making it a promising solution for cross-border transactions.
In essence, Marcus envisions Bitcoin’s Lightning Network as the remedy to the outdated and expensive global payment systems that continue to prevail in today’s interconnected world.
In conclusion, David Marcus, the former PayPal executive and co-founder of Lightspark, believes that Bitcoin’s Lightning Network holds the key to modernizing international money transfers and bringing them out of the “fax era.”
With its potential to revolutionize cross-border payments, Bitcoin Lightning could pave the way for a more efficient and cost-effective global financial system.
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