The Lightning Network Coming to El Salvador
El Salvador is set to receive the Lightning Network, a second-layer solution for Bitcoin that enables quick and cheap transactions. Athena and Genesis Coin, two Bitcoin ATM providers, have announced that they will be installing the Lightning Network on 100 machines across the country by next month, with the remaining machines to follow suit in the first quarter of 2024.
The Lightning Network is designed to facilitate fast and cost-effective Bitcoin transactions by operating on top of the main Bitcoin network. This move is expected to allow Salvadorans to engage in smaller and more frequent transactions while keeping more money in their pockets.
Bitcoin ATMs with Lightning Technology
Bitcoin ATMs are machines that enable users to buy and sell Bitcoin. There are currently 215 Bitcoin ATMs spread across El Salvador, with many of them being Chivo-branded machines. With the implementation of Lightning technology, users will have access to lower fees for their crypto transactions.
El Salvador’s Adoption of Bitcoin
In 2021, El Salvador made Bitcoin legal tender, with President Nayib Bukele spearheading the initiative. As part of this move, Salvadorans were gifted $30 in Bitcoin through Chivo wallets or by visiting Bitcoin ATMs. However, despite these efforts, widespread adoption of Bitcoin has been limited in the country.
When Decrypt visited El Salvador in 2021, it was found that only a few businesses accepted Bitcoin as a form of payment, and surveys indicated that Bitcoin had not gained significant traction among Salvadorans.
Hot Take: El Salvador’s Continued Experimentation with Cryptocurrency
Despite the government’s efforts to promote Bitcoin adoption through initiatives like making it legal tender and implementing technologies like the Lightning Network, it seems that widespread acceptance and usage of cryptocurrency still face challenges in El Salvador. The success of these initiatives may depend on addressing factors such as infrastructure, education, and regulatory clarity to encourage broader adoption and usage among citizens.
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