In a recent interview with CNBC on September 11th, David Marcus, the former president of PayPal and co-founder of the Bitcoin Lightning-focused payment service Lightspark, highlighted that while information can now be effortlessly transmitted over the internet through methods like email or text, global payments have remained stuck in what he calls the “fax era.” Marcus believes that Bitcoin’s Lightning network has the potential to address the complex and cumbersome process of cross-border money transfers. He drew a comparison, stating that when you want to communicate with someone, you can easily obtain their email address and send them an email within minutes, or even text them. However, he pointed out that there is no universally accepted protocol for transferring money over the internet.
In this scenario, Marcus elucidated that sending money to individuals residing outside the United States entails acquiring their bank account number and physically visiting a local bank to initiate an international wire transfer, incurring a $50 fee. He further noted that if this action is attempted after Friday at 5 pm, it becomes considerably more challenging.
Marcus, who co-founded Lightspark in May 2022 and currently serves as its CEO, revealed that his company is currently engaged in a competitive race to address this challenge by harnessing the capabilities of the Bitcoin Lightning network.
Nevertheless, the former PayPal president holds the belief that Bitcoin Lightning will not primarily be utilized for day-to-day purchases. Instead, its primary utility will be for international money transfers. He explained, “Our perspective is that Bitcoin won’t serve as the currency for everyday transactions. Instead, Bitcoin will be employed to send U.S. dollars to someone, who will ultimately receive it in the form of Japanese Yen or Euro on the opposite side of the globe.”
Marcus emphasized that the combination of Bitcoin’s settlement layer and Lightning’s real-time payment capabilities facilitates secure and cost-effective cash finality.