The internet allows information to travel around the world in seconds in today’s digital age. Nonetheless, the world of global payments appears to be stuck in the “fax era,” as David Marcus, former PayPal CEO and co-founder of Bitcoin Lightning-focused payment firm Lightspark, said in a recent interview with CNBC.
Marcus is convinced that Bitcoin’s Lightning network could be the answer to the time-consuming process of transmitting money across borders. While interacting with someone all over the world is as simple as sending an email or text message, there is no standardized mechanism for transferring money online, according to Marcus.
“If you were to send them money, but they weren’t a U.S. citizen here using one of the same fintech apps you’re using, then you wouldn’t be able to do that,” he explained. As a result, we are still in the fax era of worldwide payments.”
According to Marcus, sending money to non-US residents sometimes entails the time-consuming chore of getting their bank account information and visiting a local bank to pay a high $50 fee for an international wire transfer. Furthermore, as Marcus stressed, timing is critical: “If it’s after Friday at 5 p.m., tough luck.”
Lightspark, which Marcus co-founded in May 2022 and now heads as CEO, intends to transform that narrative. The company’s goal is to use the Bitcoin Lightning network to simplify worldwide payments.
While Marcus sees a bright future for Lightning, he believes its major purpose will be offshore money transfers rather than daily transactions. “Our view is actually that Bitcoin is not the currency that people will use to buy things,” he explained. Instead, the Lightning network will act as a conduit for sending US dollars, which will be received in other currencies like as Japanese Yen or Euro on the other side of the planet.
What distinguishes the Bitcoin Lightning network is its ability to combine Bitcoin’s settlement layer with Lightning’s real-time payment capabilities at a low cost. This synergy enables cash finality quickly and efficiently, transforming cross-border transactions.
It’s only natural that global payments catch up in a world where information travels at the speed of light. With the strength of the Bitcoin Lightning Network, David Marcus and Lightspark are set to lead this revolution, putting an end to the “fax era” of global payments.