In a recent CNBC Squawk Box interview, David Marcus, CEO, and co-founder of Lightspark, discussed the company’s ambitious project focused on the Bitcoin Lightning Network. Lightspark, a startup centered on Bitcoin-based payments, is dedicated to enhancing the speed and scalability of Bitcoin transactions.
The Global Payment Challenge
Marcus stressed the urgency of transforming Bitcoin into a global payment network, likening the current state of global payments to the early stages of email communication.
“We are still in the fax era of global payments, and that is precisely what we, at Lightspark, aim to address.”
He highlighted the complexity of sending money across borders due to the absence of a universal internet money protocol, comparing it to the ease of global communication via email or messaging apps.
Contrasting the existing conventional international payment system, Marcus explained, “So, if you needed to send money to someone, you’d need their bank account number, visit a bank, and pay a hefty $50 fee through an international wire transfer. If it’s after 5 PM on a Friday, you’re out of luck.”
Marcus underscored the significance of this endeavor, noting that current fintech apps like Venmo struggle to seamlessly facilitate cross-border payments.
All fintech apps require both parties and the app’s local availability, obstructing frictionless global transactions.
Marcus pointed out that text messages only necessitate the recipient’s phone number, enabling communication without a specialized platform. The Bitcoin Lightning Network serves as the solution, and Lightspark envisions making Bitcoin payments as effortless as sending a text message.
Addressing Bitcoin’s price volatility and its unsuitability as an everyday currency, the CEO clarified that their objective is not necessarily to position Bitcoin as a currency for daily transactions.
Instead, they envision Bitcoin serving as a settlement layer, enabling users to swiftly and efficiently exchange fractions of Bitcoin on the Lightning Network.
The approach of exchanging Bitcoin fractions empowers users to transmit various currencies, such as dollars, Japanese Yen, or Euros, utilizing Bitcoin as the foundational settlement infrastructure.
David Marcus’s insights in the Squawk Box interview shed light on Lightspark’s mission to revolutionize global payments by harnessing the potential of the Lightning Network.
The Lightning Network aims to streamline cross-border transactions, making them more convenient, efficient, and cost-effective, ushering in a new era of global cryptocurrency payments.