Bitcoin Provides a Politics-Free Path for Payments

Stablecoins Are the largest players in the realm of cryptocurrencies, except for Bitcoin, which stands as an outlier being larger than every other type of cryptocurrency, inclusive of stablecoins, put together.

Why it matters: Some businesses think that the Bitcoin blockchain should also protect stablecoins—these are coins tied to traditional currency—and these are referred to as the industry's killer app .

The big picture: The market has distinctly shown its preferences regarding stablecoins: rapid transactions, openness, and crucially, near-zero volatility.

Bitcoin enthusiasts propose an alternate viewpoint, suggesting that what the globe truly requires is currency free from political influence.
Bitcoin is truly the largest, most liquid option available. credibly neutral level of transactions within the global sphere.

State of play: The Bitcoin blockchain comes with high usage costs, yet its sister network , Lightning, is not.

While it may remain credibly neutral, there isn’t yet a widely accepted low-volatility option for Bitcoin or Lightning networks.

Driving the news: Lightspark announced on Tuesday that they have developed Spark This allows for the creation of tokens and development of applications with minimal trust requirements, using Bitcoin as the backbone for providing security assurances, thus establishing a foundation through which numerous stablecoins can operate.

Lightspark formerly unveiled user-friendly payment options. addressing system That appears to be an email address used by major international banks. Xapo and Nubank use today.
It just announced a partnership With a system for releasing stablecoins.

What they're saying: David Marcus, the CEO of Lightspark (a former member of both PayPal and Meta, formerly known as Facebook), told Romero.my that they aim to use the Bitcoin blockchain as the platform for various types of stablecoins – potentially thousands of them.

"As the current setup of the market for stablecoins won’t resemble what we see two years down the line,” Marcus stated.

Between the lines: Banks and fintech companies find stablecoins appealing since the issuers can retain the returns generated from the principal amount, resulting in a straightforward and profitable margin, particularly during periods of elevated interest rates.

But if dropping interest rates don't kill that margin, competition will. Stablecoin issuers are already finding ways to share their yield with holders as a way to increase market share.
However, Lightspark has devised a strategy for issuers to generate revenue even as market dynamics inevitably compel them to transfer all their returns to users.

Zoom out: Lightspark is not the sole entity aiming to shift international transactions to Bitcoin.

Another Bitcoin-driven enterprise is Strike. reaches 100 countries Its creator convinced El Salvador to adopt Bitcoin.
It already enables stablecoin withdrawals Across various organizations. It enables the most committed Bitcoin enthusiasts to pay bills Through the Strike app, using either bitcoins or currency.

What we're watching: Square's point-of-sale system from Block Inc.

Block has embraced cryptocurrency, primarily focusing on Bitcoin as an investment. Nevertheless, it might also explore stablecoins as a potential new payment method. The company currently has a dedicated team working on this initiative. on LinkedIn posts .
The block refused to comment for Romero.my.id.

The intrigue: In a world that's growing ever more divided, the U.S. weaponization of the dollar might push more countries toward alternative payment systems not based on U.S. currency.

If they struggle to agree on another government-supported currency, Bitcoin stands ready as a practical and politically neutral option for countries seeking an alternative.
What's required is for someone to develop a system capable of managing that level of traffic.

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