In a recent interview with CNBC’s Squawk Box, David Marcus, co-founder of PayPal and current CEO of Lightspark, shared his view on Bitcoin’s role as a payment method. Contrary to some expectations, Marcus expressed skepticism about Bitcoin becoming a common currency for everyday transactions.
Instead of advocating for Bitcoin as a primary means of exchange, Marcus placed his confidence in the lightning network. This layer-2 scaling solution is designed to enhance the utility of Bitcoin by making transactions faster, reducing fees, and enabling microtransactions. Unlike conventional Bitcoin transactions that occur on the primary blockchain, the lightning network processes transactions separately before eventually settling them on the Bitcoin blockchain.
Marcus’s vision extends to making the lightning network a “universal protocol for money on the internet,” similar to how texting serves as a universal communication protocol. However, this protocol would facilitate the use of existing fiat currencies such as dollars, yen, or euros rather than Bitcoin itself.
He elaborated on this concept, likening a fraction of a Bitcoin within the lightning network to a small data packet on the internet, specifically designed for the exchange of value. Users would have the flexibility to send any currency of their choice and receive their preferred currency on the receiving end. According to Marcus, lightning network would serve as the intermediary layer for “real-time,” “low-cost,” and “cash-final” settlement.
Marcus’s vision aligns with the broader trend of improving the efficiency and accessibility of digital payments. By facilitating cross-border transactions and enabling users to transact in their preferred fiat currencies, lightning network could potentially usher in a new era of frictionless global commerce.
While Marcus’s perspective on Bitcoin’s role may seem surprising, it highlights the growing recognition of Bitcoin as a store of value, similar to digital gold, rather than a daily spending currency. As technology continues to evolve, the future of digital payments remains a dynamic landscape, with the lightning network poised to play a pivotal role in shaping it.
