News for hackers. Stuff that matters.

A comment on El Salvador to adopt Bitcoin as legal tender. Parent comment

Re:El Salvador to adopt Bitcoin as legal tender by arcticbull on Sunday June 06, 2021 @08:27AM (#27412683)
The thing is, Strike doesn't open LN channels for people. In fact, they only use LN to move money between custodial accounts they themselves are beneficial owners of. I can't for the life of me figure out why they'd use LN - or crypto at all - for this and not just an entry in the centralized database they already have tracking balances. Avoid regulation, maybe? But like why?

I've listened to an hour long Maller podcast and I simply don't get it.

[ Parent | on HN ]
Re:El Salvador to adopt Bitcoin as legal tender by mambru on Sunday June 06, 2021 @12:43PM (#27414333)
Why are remittances so expensive if this is so simple? Maybe you are missing something here?

The function of lightning and the Bitcoin base layer is settlement and clearing, those 2 things are non-trivial.

Then there is also the legal aspect, which cannot be detached from those.

[ Parent | on HN ]
Re:El Salvador to adopt Bitcoin as legal tender by arcticbull on Sunday June 06, 2021 @03:07PM (#27415450)
Generally the answer is regulation. So I suspect that is quite likely the answer here. Although since they are an MSB in at least the US they answer could just as easily be crypto fever.

For a centralized entity settlement and clearing aren’t hard. You have a money pile and a debt facility in both countries, then you wire money to net settle once in a while.

[ Parent | on HN ]