Bitcoin will bring global payments out of the ‘fax era’ — Ex-PayPal boss

 Marcus said there’s still no universal protocol when it comes to transferring money, unlike information which can be shared via email.

Today, while information can swiftly traverse the internet through email or text messages, global payments still linger in the "fax era," as stated by David Marcus, former PayPal president and co-founder of the Bitcoin Lightning-focused payment service, Lightspark. Marcus believes that Bitcoin's Lightning Network could resolve the intricate process of cross-border money transfers. Unlike the ease of obtaining someone's email address for quick communication, Marcus highlights the absence of a universal protocol for online money transfers.

"If you were to send them money [but] they were not a U.S citizen here using one of the same fintech apps you’re using then you wouldn’t be able to do that. So we’re still in the fax era of global payments.”

Marcus explained that a money transfer to non-U.S. residents in this case would involve obtaining their bank account number and walking to the local bank to pay $50 for an international wire.

Marcus, who co-founded Lightspark in May 2022 and serves as CEO, said his company is now in a race to solve that using the Bitcoin Lightning network.

The former PayPal president, however, envisions that Bitcoin Lightning won't find widespread use for everyday purchases; rather, it will primarily serve as a solution for international transfers. He expressed, "Our view is actually that Bitcoin is not the currency that people will use to buy things." Instead, Bitcoin will serve as a means to transmit U.S. dollars, with the recipient ultimately receiving the funds in the form of Japanese yen or euros on the opposite side of the globe, as explained by the Lightspark CEO. Marcus emphasized that Bitcoin's settlement layer, coupled with Lightning's real-time payments, achieves cash finality at a remarkably low cost.