Lightning Labs CEO outlined Bitcoin Lightning essentials at FT Live’s Crypto and Digital Summit and hinted at a new development on Bitcoin’s leading layer 2.
Lightning Labs CEO Elizabeth Stark has recently announced the potential integration of stablecoins on the Bitcoin network. The CEO revealed the latest from the Bitcoin development firm at FT Live’s Crypto and Digital Assets Summit in London.
According to Stark, Lightning Labs’ Taproot assets protocol is working on bringing stablecoins and tokenized assets to Bitcoin. Also, she stated that developers have made significant progress toward this aim, including testing transactions on Lightning.
“We released an early part of the code in October and recently demoed the first-ever transaction on Lightning of an asset. The idea is to have crypto dollars and stablecoins on the Bitcoin blockchain,” she said.
Stark further emphasized that traditionally, digital assets operated on blockchains with high fees and other issues. She argues that Bitcoin, with its secure and decentralized network, is ideally positioned to facilitate the use of stablecoin.
Bitcoin and Stablecoin As a Store of Value
The Lightning Labs CEO also discussed the value of Bitcoin and stablecoins as a store of value, particularly in countries facing inflation and currency devaluation challenges. She mentioned that the stablecoin has expanded since the COVID-19 pandemic, especially in emerging markets.
In addition, Stark explained that the most loyal users seek stability, opting for either Bitcoin, stablecoins, or a mix of both. She further mentioned that Tether and Circle’s USD Coins hold more US Treasury bonds than countries like Germany and South Korea, as end-users don’t benefit from the interest.
Lightning-Driven Stablecoins will be Advanced
Despite the significant growth in the value of the stablecoin market, the CEO noted that infrastructure will be needed to enable the insurance of stablecoins and real-world assets on the Bitcoin blockchain.
“That’s why we’re building this protocol and this technology right now. We’re not issuing assets; we’re building the rails. Asset issuers will use our technology to issue real-world tokenized assets,” Stark highlighted.
The CEO recommended that financial institutions could issue gold assets, stablecoins, and fiat-backed assets on Bitcoin to facilitate transactions over the Lightning Network. Stark added that the process could competitively enable global transactions at significantly lower rates than traditional networks.