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Lightning Labs conducts successful tests enabling stablecoins on the Bitcoin blockchain
Lightning Labs conducts successful tests enabling stablecoins on the Bitcoin blockchain
Lightning Labs, the developer behind it BitcoinLightning Network, has successfully conducted tests of a protocol aimed at allowing the issuance of stablecoins on the Bitcoin blockchain. During her speech at the Financial Times Crypto and Digital Assets Summit, Elizabeth Stark, CEO of Lightning Labs, announced that the developer recently executed a test transaction on the Lightning Network using an asset created with the Taproot Assets protocol.
Stark highlighted the goal of having “cryptodollars and stablecoins” on the Bitcoin blockchain, saying this would solve real-world problems and attract more users into the realm of digital assets. He expressed a strong focus on solving practical problems rather than promoting memecoins or gambling initiatives.
The Lightning Labs CEO also highlighted an increase in developer interest in Bitcoin following its halving. He cited examples of builders working on decentralized finance (DeFi) projects and initiatives such as bitVM, which enables the creation of Turing-complete Bitcoin contracts. Stark highlighted the global transactionality of Lightning Labs’ technology, aiming to eliminate the concept of cross-border payments. He questioned the need to label transactions as “cross-border” when we don’t use that terminology for other Internet-based activities such as email or text messaging.
Referring to a recent report from the International Monetary Fund (IMF), Stark noted that Bitcoin has become a crucial conduit for remittances and evading capital controls in emerging markets. This finding is in line with the experiences of developers and communities working in regions affected by hyperinflation and authoritarian regimes. In such circumstances, Bitcoin serves as an asset and means of transacting when traditional alternatives are limited.