Fast, cheap and a lifeline for Latin America

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bitcoins in El Zonte, La Libertad, El Salvador on September 4, 2021. – El Salvador’s Congress approved a law in June that will make bitcoin legal in the country from September 7, in a bid to boost its economy well that analysts warn of a negative impact. (Photo by MARVIN RECINOS/AFP) (Photo by MARVIN RECINOS/AFP via Getty Images)AFP via Getty Images

The Lightning Network might be the best payment network you’ve ever heard of. It is a second layer network built on top of bitcoin that facilitates instant and cheap bitcoin payments without the need for intermediaries. Lightning is harnessed to send money around the world faster, better, and cheaper than with traditional financial rails.

The Lightning Network is a payment technology that democratizes access to the global economy, making reliable online or offline transactions faster and cheaper, says Alyse Killeen, Founder and Managing Partner of Stillmark VC. Stillmark was founded in 2019 as the first bitcoin-focused venture capital firm.

Killeen is bullish on the Lighting Network in a number of ways. With lightning, businesses can expand their total addressable markets to the unbanked. Money can also be sent in smaller payments, reducing risk and lowering costs in the remittance market.

As the use of bitcoin grows, so does its impact. The next two founders create opportunities in South America in payments and remittances, extending financial services to areas where traditional means cannot.

Osmo

“Latin America and the Caribbean has received over $140 billion in cross-border payments. If we want to achieve wide adoption, we need to simplify the process,” explained Piero Coen of the inspiration behind his company Osmo. .

Osmo is a mobile payments company that leverages the Lightning Network to help people in Latin America send and receive money using a mobile app. Its goal is to make digital payments faster, cheaper and more accessible, especially in countries with large numbers of unbanked people.

The bitcoin received is immediately and automatically converted into the user’s local currency. “They don’t need to understand bitcoin; they just need to know that it’s as easy as WhatsApping or emailing,” Coen told me during our interview.

“We believe that universal participation in the financial system is a human right, he concluded in our interview. Apps like Osmo help bank the unbanked in places where people might not be. able to participate in the legacy system. A feat made possible by leveraging bitcoin and lightning as payment rails, rather than holding the asset

IBEX

Ibex is a bitcoin infrastructure company specializing in providing enterprise solutions for the bitcoin lightning network. They offer their customers a Lightning-as-a-Service infrastructure for rapid and scalable deployment, which is essential in helping them leverage the Lightning Network to send value globally, instantly and anywhere. any scale.

“Imagine a world where transactions are processed instantly, disrupting existing norms and paving the way for a more efficient future.” Ibex CEO Jose Lemus told me in our interview. The instantaneous nature of the Lightning Network is particularly relevant in South America, reducing settlement risk and transaction costs for small businesses.

Headquartered in the United States, IBEX also has offices in El Salvador, Guatemala and Mexico, allowing them to provide their services to clients around the world. Most recently, the company partnered with Grupo Salinas to adopt the Lightning Network into its conglomerate, adding to its growing list of strategic alliances with companies seeking to grow globally by embracing emerging technologies.

“This transformative technology challenges tradition and opens up new possibilities, creating a future where real-time payments reshape the foundations of commerce,” Lemus concluded in our interview. An optimistic tone.

Both companies facilitate the instantaneous transfer of value on the Lightning Bitcoins Network. Payment recipients should not or should not receive bitcoins. It is simply the tool that facilitates the transaction.

The use of bitcoin and lightning as payment rails will become more common as people begin to realize the power and effectiveness of these methods. As bitcoin continues to permeate underdeveloped economies, the next wave of adoption could come from people who don’t even realize they’re using bitcoin.

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I’m a freelance writer exploring the Bitcoin ecosystem. My work has been published by Bitcoin Magazine and Bitcoin News. I am personally invested in bitcoin and am fascinated by the emerging bitcoin economy.

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