A new era is dawning for Bitcoin. At the recent FT Live's Crypto and Digital Assets Summit in London, Elizabeth Stark, CEO of Lightning Labs, revealed that her company is close to enabling the issuance of stablecoins and tokenized assets directly on the leading crypto's network .
The Lightning Network is preparing to welcome Stablecoins
During this summit, the co-founder of Lightning Labs revealed the latest advances made by her company. This innovation will enable the native integration of stablecoins and tokenized assets on the Bitcoin network, thanks to the Taproot upgrade.
“ We recently successfully demonstrated the first-ever native transaction of an asset on Lightning. Our goal is to enable the circulation of Crypto-Dollars and Stablecoins directly on Bitcoin” , has declared Elizabeth Stark.
Until now, these digital assets primarily operated on other blockchains suffering from high fees and other issues. But 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 the development of this infrastructure which will allow financial institutions and asset issuers to offer stablecoins backed by fiat currencies, or even gold, on Bitcoin.
Bitcoin and Stablecoins, popular stores of value
Elizabeth Stark also highlighted the strengths of Bitcoin and stablecoins as stores of value, particularly popular in countries experiencing inflation and the depreciation of their currencies. Since the COVID-19 crisis, the adoption of stablecoins has soared, particularly in emerging markets.
“ The most convinced users are those looking for a stable safe haven. They are either turning to Bitcoin or stablecoins, or even combining the two“, explains the manager.
But beyond this store of value function, stablecoins on Lightning offer a major competitive advantage: unbeatable transaction fees compared to traditional payment networks like Visa. “ On Lightning, transaction fees Stablecoins can go down to a penny or less“, underlines Elizabeth Stark. Enough to democratize cross-border payments at lower costs.
The imminent arrival of stablecoins at the heart of the Lightning Network represents a turning point in the evolution of the Bitcoin ecosystem. By providing speed, scalability and minimal fees, this innovation could catalyze the global adoption of cryptos and strengthen Bitcoin in its role as a digital reference value.
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