July 21, 2024
Paypal Co-Founder David Marcus Believes Bitcoin Won't Become a Widely Used Payment Method
Bitcoin News

Paypal Co-Founder David Marcus Believes Bitcoin Won’t Become a Widely Used Payment Method

Even as he works to end “the fax era of global payments,” Bitcoin bull David Marcus said he doesn’t think BTC will ever take off as a widely used or prevalent form of payment.

The businessman stated this in an interview with CNBC’s Squawk Box on Monday. “Our view is actually that Bitcoin is not the currency that people will use to buy things,” he added.

Marcus, who co-founded PayPal and is currently the CEO of Lightspark, a business based on Bitcoin’s lightning network, may appear odd for making such a statement. However, he is hedging his bets on that network, which is a layer-2 scaling solution built on top of the leading cryptocurrency.

The lightning network aims to speed up, reduce the cost, and improve the usability of Bitcoin transactions for tiny payments. Before eventually settling them on the primary Bitcoin blockchain, it conducts BTC transactions separately.

The startup wants to make lightning a “universal protocol for cash on the internet,” much like texting is a worldwide standard for communication, claims Marcus. The fiat currencies that we are familiar with and utilize today would still be used for currency transfers through the network.

“A fragment of a Bitcoin on top of lightning is like a small packet of data on the internet, only for value,” explained Marcus. Users could transfer any kind of money, such as dollars, yen, or euros, and receive any kind of money they wanted on the other side. He explained that Lightning serves as the “real-time,” “low-cost,” and “cash-final” settlement layer.

The executive’s opinions are in line with those of Jack Mallers, CEO of Strike, whose business also uses Lightning for less expensive international currency transfers. The wallet software now offers lightning-based international remittances to 65 nations, including Argentina, Nigeria, and Ghana. Users can receive transfers in the native currency of their bank account in these countries.

Marcus formerly worked on Meta’s NOVI stablecoin wallet app, which is no longer available. Marcus left the company in late November 2021 due to failed collaborations and regulatory pressure, citing his “entrepreneurial DNA” as a motivator. Six months later, he started Lightspark.

Peter Thiel, a fellow co-founder of PayPal, likewise praises Bitcoin and views it as a viable alternative to the “bankrupt” central banks and “fiat money regime” of today.

Currently, Bitcoin, Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC) can all be purchased, sold, and held through PayPal. PYUSD, the payment platform’s stablecoin, was introduced last month with the stated goal of “transforming payments in Web3 and digitally native environments.”

Image: Wallpapers.com

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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