23:00 ▪
3
Minimum read time ▪ up to
A new era for Bitcoin begins. At the recent FT Live Crypto and Digital Assets Summit in London, Lightning Labs CEO Elizabeth Stark said that her company is issuing stablecoins and tokenized assets directly on major cryptocurrency networks. It has become clear that this is on the verge of becoming possible.
Lightning Network is preparing to welcome stablecoins
At the summit, the co-founder of Lightning Labs announced the latest advances her company has made. This innovation enables native integration of stablecoins and tokenized assets on the Bitcoin network through the Taproot upgrade.
“We recently successfully demonstrated the first native transaction for assets on Lightning. Our goal is to enable the circulation of crypto dollars and stablecoins directly on Bitcoin.'' said Elizabeth Stark.
Until now, these digital assets have primarily been operated on other blockchains, which are plagued by high fees and other issues. However, according to Elizabeth Stark, the Bitcoin network is best positioned to facilitate the use of stablecoins because it is “the most secure and decentralized blockchain.”
Lightning Labs is currently working on developing this infrastructure. This will allow financial institutions and asset issuers to offer fiat currencies on top of Bitcoin, or even gold-backed stablecoins.
Bitcoin and Stablecoins, Reserves of Precious Value
Elizabeth Stark also highlighted the strength of Bitcoin and stablecoins as reserves of value, especially in countries experiencing inflation or currency depreciation. Stablecoin adoption has skyrocketed since the coronavirus crisis, especially in emerging markets.
“The most convinced users are those looking for a stable store of value. They may turn to either Bitcoin or stablecoins, or even a combination of both.” explains the leader.
But beyond this function as a store of value, stablecoins on Lightning offer a significant competitive advantage with unparalleledly low transaction fees compared to traditional payment networks like Visa. Masu. “For Lightning, transaction fees are STable coins can be worth less than 1 cent.” Elizabeth Stark emphasizes. This could democratize cross-border payments at low cost.
The upcoming arrival of a stablecoin at the center of the Lightning Network represents a turning point in the evolution of the Bitcoin ecosystem. By bringing speed, scalability, and minimal fees, this innovation has the potential to accelerate the global adoption of cryptocurrencies and strengthen Bitcoin in its role as the digital value of reference.
Maximize your Cointribune experience with the Read to Earn program! Earn points and access exclusive benefits every time you read an article. Sign up now and get rewards.
Passionate about Bitcoin, explorer of blockchain and cryptography, and a challenger at the forefront of communication. We guarantee you a free life and financial freedom, and we guarantee you a safe life so you can use your Bitcoin safely.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
