David Marcus, former PayPal executive and co-founder of Bitcoin lightning payment service Lightspark, has likened global payments to the "age of faxes," highlighting the challenges and inefficiencies in sending money across borders.
Marcus pointed out that while communication over the internet has become incredibly efficient with email and text messaging, the process of sending money internationally remains archaic. He emphasized that there's no universal protocol for transferring money online, making it cumbersome and expensive.
In contrast to the ease of sharing someone's email address for communication, sending money across borders involves complex processes. If someone wants to send money to a non-U.S. resident, they typically need to obtain the recipient's bank account information and visit a local bank to initiate an international wire transfer, incurring fees that can be as high as $50.
To address this issue, Marcus's company, Lightspark, is actively working to leverage the Bitcoin Lightning Network. The Lightning Network is a second-layer solution built on top of the Bitcoin blockchain that allows for faster and cheaper transactions.
Marcus envisions that the Lightning Network will primarily be used for international money transfers rather than daily purchases. Instead of directly using Bitcoin for everyday shopping, it will serve as a means to send funds globally. For example, someone could send dollars through Bitcoin, which would then be converted into yen or euros on the recipient's end, making cross-border payments more efficient and cost-effective.
In Marcus's view, Bitcoin's settlement layer combined with the Lightning Network's real-time payment capabilities offers a compelling solution for streamlining international money transfers.
