This is a transcribed excerpt of the “Bitcoin Magazine Podcast” hosted by P and Q. In this episode, they join Lightning Lab’s head of business development, Ryan Gentry, to talk about how the company is building stablecoin usability on the Lightning Network with their new Taro protocol .
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Q: I want to talk about stablecoins with you and have the following conversation: Are they necessary in the Bitcoin ecosystem and why or why?
Ryan Gentry: That’s a good question, and it’s one that really made us decide to focus on Taro this year.
Rewind Bitcoin 2021 when we got the news of El Salvador’s bitcoin legal tender law we got a great presentation by Jack Maller. That started the huge wave of Lightning adoption, Lightning apps, and Lightning wallets of these emerging markets everywhere from Brazil to Argentina to El Salvador, Nigeria, Ghana, South Africa, Vietnam, as well as around the world. places in the world.
I think the most exciting part of my job is that I get to work with Bitcoin entrepreneurs and Bitcoin developers all over the world who are trying to use Lightning. When we discussed with them all the last year when they received tons of new signups, tons of new adoptions, we were delighted.
As the start year ended, we kept hearing this over and over from these entrepreneurs in emerging markets, something like, “Okay, this is the best year ever, The adoption is great, the numbers are up and up and I have successfully bought all the Bitcoiners, like in Chiang Mai, Vietnam. ” Neutron Pay: “We have all the Bitcoins. We got them all. They are all using our app. Surprised. That’s great. The next class of users that we’re looking to get, they want dollars. “
It’s just something we keep hearing from around the world, from South America to Africa to Southeast Asia, that there’s the next set of users that we want to join the Bitcoin ecosystem, but the using bitcoin for daily payments is also a bit too much and they really want to use the dollar.
Of course, at Lightning Labs, you are by definition a Bitcoin Maximizer. I think everyone on the team is extremely bullish on bitcoin. We wouldn’t build a Bitcoin-based payment protocol if we weren’t bullish on the bitcoin asset. But we just keep listening from real people who are out of this world, trying to solve real problems and trying to develop adoption of their apps that they really need dollars for. .
I think it’s just one of the things that if we can deliver the same Lightning experience, we can attract more users to the Lightning Network, we can help all startups. industry is pushing Bitcoin infrastructure and bringing users in and trying to train users on why bitcoin is important, if we can give them this tool that allows them to reach 50,000 people next user, 100,000 users, million users, I think that’s an absolute win. I think it’s a huge, huge boom for the ecosystem, and it’s just down to user demand, which I think is really important.
A side benefit of this that I think is not discussed much is that Taro is running on Bitcoin rails, because it requires a full Bitcoin node, because it also requires a Lightning node, if we provide give the market what it wants in stablecoins, we are getting benefits as these new companies adopt Bitcoin infrastructure and propagate Bitcoin nodes and propagate Lightning nodes and Lightning channels into all those this place they probably wouldn’t necessarily accept if it was just bitcoin.
I think it’s an underappreciated point, just the spread of the Bitcoin infrastructure. Because if we are right about what a bitcoin asset is, then over time the demand for the dollar will decrease and this Bitcoin infrastructure will be ready for users to shift their demand from USD to BTC . I think it’s a moment where we’re all really excited and really motivated, but there’s only this one step bridge in between, where we have to give people what they want.