Austin Vernon on El Salvadoran bitcoin acceptance, from my e mail – Marginal REVOLUTION


Despatched this to [redacted, a man of substance] yesterday. LN = Lightning Community, Bitcoins layer 2 scaling resolution primarily based on channels:

So far as I perceive it, everybody utilizing LN in El Salvador has primarily been utilizing Strike. Basic crypto conundrum in that they needed to centralize to get it to work. There’s a Twitter thread with the CEO the place he reveals they needed to block their software program utilizing most non Strike LN nodes as a result of there have been so many failed funds.

Additionally appears such as you submit USD they usually have some form of centralized fee system to handle the transactions to the Bitcoin layer 1 chain.

I think about it is a large enchancment for folks in El Salvador and I’ve heard Strike has already been in style, however I don’t see it as what’s being touted as.

Moreover to the e-mail above:

There was an out on the finish of the regulation that claims you don’t have to simply accept Bitcoin if you’re too poor. However a fundamental smartphone with the app means you’ll be able to settle for it. There’s a small city the place a donor gave the city Bitcoin and compelled them to make use of it as foreign money and even began doing a non-public UBI in Bitcoin. Among the shops began taking it. Strike is simply out there within the US and El Salvador. So in a fact is stranger than fiction, the thought most likely bought jumpstarted by a surfer that cherished each a seaside city and bitcoin. Helps that El Salvador makes use of the greenback. The legislators would simply need to drive to the city to see the way it works relatively than examine it.

To me that is extra like a brand new form of financial institution than some decentralized foreign money takeover, as a result of Strike is comparatively centralized. Being like a financial institution most likely implies among the similar benefits and vulnerabilities of a daily financial institution. The PR is sweet! Not having to get money at a Western Union that could be far (and the place you may get robbed) might have extra affect than cheaper charges. It is going to be a couple of years earlier than the expertise exists to do that in a extra decentralized means. Fascinating nonetheless.


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