Stablecoins built on the Bitcoin network are moving closer to reality with the help of Lightning Labs and the Taproot upgrade. Elizabeth Stark, CEO of Lightning Labs, revealed this latest development at the FT Live’s Crypto and Digital Assets summit in London. She also explained Bitcoin and the Lightning Network to a traditional finance audience. The Taproot Assets protocol by Lightning Labs is working on bringing stablecoins and tokenized assets to Bitcoin. Stark emphasized that Bitcoin’s network is the most secure and decentralized blockchain, making it ideal for stablecoin usage. She also discussed the value of Bitcoin and stablecoins as a store of value, particularly in countries dealing with inflation and devaluation of fiat currencies. She noted that stablecoin adoption has increased significantly, especially in emerging markets, where users are seeking a stable store of value. Stark highlighted that Tether and Circle, the two largest stablecoin players, hold more US Treasury bonds than major nations like Germany and South Korea. Despite stablecoin holders not benefiting from interest, they choose stablecoins in countries with hyperinflation or unstable economies. Stark expressed the need for infrastructure to facilitate the issuance of stablecoins and real-world assets on the Bitcoin blockchain. Lightning-powered stablecoins would offer superior options, allowing financial institutions to issue gold assets, stablecoins, and fiat-backed assets on Bitcoin and transact through the Lightning Network. Stark also emphasized the cost advantage of Bitcoin compared to other blockchains and traditional finance systems, enabling global transactions at significantly lower rates.
CEO of Lightning Labs Announces Imminent Arrival of Bitcoin-backed Stablecoins