The recognition of Bitcoin (BTC) by El Salvador as legal tender has opened up new payment options for its citizens, with the McDonald’s fast food empire accepting payments in cryptocurrency through the Lightning Network.
Journalist Aaron van Wirdum it gave the news Tuesday after visiting a McDonald’s restaurant in El Salvador, where he was presented with a printed QR code directing him to an invoice page on the Lightning Network. McDonald’s had 19 locations throughout the Latin American country in 2019.
Just walked into a McDonald’s in San Salvador to see if I could pay for my breakfast with bitcoin, tbh fully expecting to be told no.
But low and behold, they printed a ticket with QR that took me to a webpage with Lightning invoice, and now I’m enjoying my desayuno traditional! pic.twitter.com/NYCkMNbv7U
— Aaron van Wirdum (@AaronvanW) September 7, 2021
Lightning is a layer two payment protocol designed to make BTC transactions more scalable. Although Bitcoin has been successful as an investible asset, its adoption as a medium of exchange has been limited. Bitcoin payments were the core of the Satoshi Nakamoto whitepaper from 2008 describing BTC as electronic cash. (Interestingly, Nakamoto’s forum posts and correspondence used “cash” and “gold” synonymously).
The Lightning Network is likely to prove invaluable if El Salvador hopes to achieve mass adoption of Bitcoin payments. However, beyond immediate transactions, the El Salvador’s Bitcoin Tactic Could Succeed by streamlining global remittances, increasing the wealth of its citizens, and attracting cryptocurrency-focused entrepreneurs to the country.
The El Salvador Bitcoin Law officially went into effect on Tuesday, proving to be a classic “buy the rumor, sell the fact” event for the markets.. From maximum to minimum, the price BTC plummeted 19% between Monday and Tuesday, reaching a low of USD 42,900.
President Nayib Bukele confirmed on Monday that his government had bought its first Bitcoin. Until Tuesday, the country I had 550 BTC in your reserves.
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