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Bitcoin's potential as global payment network, says former PayPal president

EditorRachael Rajan
Published 2023-09-11, 02:10 p/m

David Marcus, the former president of PayPal (NASDAQ:PYPL) and current CEO of Lightspark, shared his vision for Bitcoin (BTC) in a CNBC Squawk Box interview on Monday. Marcus emphasized the potential of Bitcoin to become a global payment network, expanding its utility beyond just a store of value.

Marcus outlined the absence of a universal protocol for online money transfers in the digital era, contrasting it with the traditional financial system's established protocols for currency exchange and international payments. He suggested that Bitcoin, due to its decentralized nature and growing acceptance worldwide, could fill this gap.

Marcus' perspective is unique in his appreciation of Bitcoin's potential in conjunction with the Lightning Network. This layer-2 scaling solution addresses Bitcoin’s scalability issues by enabling faster and cheaper transactions. He compared a fragment of BTC on top of Lightning to a small packet of data on the internet, valuable for cross-border transfer payments at a very low cost.

However, Marcus diverged from the common perception about Bitcoin's future price if it becomes a widely used currency. He stated that “Bitcoin is not the currency people will use to buy things.” Instead, he sees Bitcoin playing a broader role in the global financial ecosystem.

He acknowledged that transforming Bitcoin into a massive global payment network is not without its challenges, including scalability issues and regulatory hurdles. Governments around the world have been scrutinizing the Bitcoin industry with varying degrees of acceptance and regulation. Marcus stressed the importance of working with regulators to ensure Bitcoin's compliance and legitimacy as a global payment solution.

Marcus has committed to realizing the full potential of the Bitcoin Lightning Network in his role as CEO of Lightspark. He believes that it's time for the world to have a universal open protocol for payments.

As the crypto ecosystem continues to evolve, Bitcoin’s adaptability and utility in various applications are becoming increasingly evident. Whether as a store of value or a tool for cross-border transfers, Bitcoin’s impact on the financial landscape is undeniable.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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