PayPal Chief Envisions Bitcoin Revolutionizing Global Payments

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despite the conve­nience of email or text for transf­erring inform­ation, global payments continue to operate in an outdated era remin­iscent of fax machines.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 This highlights that global payments are still funct­ioning within an outdated era remin­iscent of faxes.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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