Lightning Labs, the developer behind Bitcoin's Lightning Network, has conducted successful tests of a protocol aimed at enabling stablecoins to be issued on the Bitcoin blockchain.
Lightning Labs, the developer behind Bitcoin's Lightning Network, has conducted successful tests of a protocol aimed at enabling stablecoins to be issued on the Bitcoin blockchain. During her speech at the Financial Times Crypto and Digital Assets Summit, Lightning Labs CEO Elizabeth Stark announced that the developer recently executed a test transaction on the Lightning Network using an asset created with the Taproot Assets protocol.
Stark emphasized the objective of having "crypto dollars and stablecoins" on the Bitcoin blockchain, stating that it would address real-world problems and attract more users to the realm of digital assets. She expressed a strong focus on solving practical issues rather than promoting memecoins or gambling-related ventures.
The Lightning Labs CEO also highlighted a surge of developer interest in Bitcoin following its halving event. She cited examples of builders working on decentralized finance (DeFi) projects and initiatives like bitVM, which enables the creation of Turing-complete Bitcoin contracts. Stark emphasized the global transactability of Lightning Labs' technology, aiming to eliminate the concept of cross-border payments. She questioned the need to label transactions as "cross-border" when we don't use such terminology for other internet-based activities like emails or text messages.
Referencing a recent report by the International Monetary Fund (IMF), Stark noted that Bitcoin has become a crucial channel for remittances and evading capital controls in emerging markets. This finding aligns with the experiences of developers and communities working in regions affected by hyperinflation and authoritarian regimes. In such circumstances, Bitcoin serves as an asset and a means of transacting when traditional alternatives are limited.
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