Marcus highlighted the disparity between sharing information effortlessly through email and the lack of a universally recognized protocol for transferring money. The former president of PayPal argues that despite the convenience of email or text for transferring information, global payments continue to operate in an outdated era reminiscent of fax machines.
During a CNBC interview on Sept 11, David Marcus shared his belief that the Lightning Network, a payment service centered around Bitcoin’s technology, has the potential to simplify money transfers across different jurisdictions. As a former PayPal executive and co-founder of Lightspark, Marcus expressed optimism about how this innovative network could streamline complex transactions.
Marcus suggested that when encountering someone and desiring to initiate communication, one can request their email address. This enables the option of promptly sending an email within the next minute or alternatively utilizing a text message as a means of contact.
He emphasized the lack of a standardized procedure for transferring funds online. In his elaboration, he pointed out that if you wish to transfer money to someone who is not a U.S. citizen and does not use the same fintech applications as you, such a transfer would be infeasible. This highlights that global payments are still functioning within an outdated era reminiscent of faxes.
Marcus clarified that, in this scenario, to send money to individuals outside the United States, one would need to obtain their bank account details and physically visit the local bank for an international wire transfer. This process incurs a $50 fee.
PayPal’s Ex-President On Bitcoin Lightning’s Role
“If it’s past 5 p.m. on Friday, you’re out of luck,” Marcus remarked.
Marcus, a key participant in Lightspark’s founding in May 2022 and currently serving as the CEO, has affirmed that his company competes to tackle this challenge by leveraging the Bitcoin Lightning network.
The former president of PayPal believes that Bitcoin Lightning will primarily serve its purpose in international transfers instead of everyday purchases.
The CEO of Lightspark conveyed that Bitcoin is improbable to emerge as the primary currency for everyday transactions. Instead, its purpose lies in facilitating the exchange of U.S. dollars for individuals who will ultimately receive Japanese yen or euros on the opposite side of the globe.
Marcus explains that the combination of Bitcoin’s settlement layer and Lightning’s instantaneous payments achieves quick and definitive cash transactions at an incredibly affordable rate.
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“The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.”
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