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- 1 The Bitcoin network can resolve the issues with the global payments system, thinks David Marcus, a former PayPal executive.
- 2 Bitcoin (BTC) is trading at $26,150 after a 1.5% increase in the last 24 hours.
The leading cryptocurrency Bitcoin (BTC) holds undoubtedly several advantages over the existing financial system. The traditional system lags in such domains which includes transaction speed as well as fees. Many crypto enthusiasts call out the inherent flaw in the system and consider BTC a better option. A former PayPal executive reportedly compared global payments systems with the “fax era” in a recent interview.
During an interview with CNBC on Monday, September 11, 2023, David Marcus, who was president at PayPal said the traditional payments systems worldwide seem to be stuck in the age of fax while the information has its ways to be transferred through the internet.
Marcus also co-founded Lightspark, a payment service based on the Bitcoin Lightning network. According to him, the Bitcoin Lightning Network has the ability to resolve the complex issue of cross-border transactions—to transfer money across countries and jurisdictions.
David Marcus highlighted the convenience of modern communication. He mentioned that when meeting someone, you can simply ask for their email address and swiftly send them an email or a text message within minutes. This emphasizes the ease and speed of staying in touch with others in today’s digital age.
Marcus pointed out the significant issue in online money transfers, highlighting the lack of a universal protocol. He explained that if one wants to send money to someone who is not a U.S. citizen using the same fintech app, it wouldn’t be possible. This limitation reflects the current state of global payments, which he likened to the outdated era of fax machines, indicating that there’s room for improvement in cross-border money transfers.
Bitcoin Lightning Network Can Resolve Payment Issues
In this scenario, the former PayPal executive clarified that sending money to individuals outside the United States would require obtaining their bank account details and physically visiting a local bank to initiate an international wire transfer, incurring a cost of around $50. This process highlights the inconvenience and expenses associated with cross-border money transfers in the absence of a more streamlined and universal digital solution.
Marcus, who co-founded Lightspark in May 2022, and currently holds the position of CEO revealed that his company is actively engaged in a competition to address this challenge by harnessing the capabilities of the Bitcoin Lightning network. This suggests that Lightspark is working on innovative solutions to improve cross-border money transfers and make them more efficient and accessible.
The former PayPal president holds the belief that Bitcoin Lightning will find its primary utility in facilitating overseas transfers rather than everyday purchases. This perspective suggests that while Lightning may not become the go-to solution for everyday transactions, it could play a significant role in revolutionizing and simplifying international money transfers.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
