Brian Armstrong, the CEO of Coinbase, has revealed plans to incorporate the Bitcoin (BTC) lightning network to facilitate more cost-effective and speedier transactions.
With this initiative, Coinbase is set to align with other major exchanges like Binance, Bitstamp, Kraken, and OKX, which have already integrated this solution, further intensifying the global market competition.
Sharing this development on X (previously known as Twitter), Armstrong emphasized Bitcoin’s significance in the crypto space, urging the community to remain patient during the integration phase.
“Bitcoin holds paramount importance in the crypto world, and we’re eager to contribute to its faster and more affordable transactions. The integration will require some time, so we appreciate your patience.”
Coinbase has not been immune to criticisms, especially due to its past reluctance to adopt the lightning network. Notably, former Twitter CEO and ardent Bitcoin advocate, Jack Dorsey, joined the critics asking,
“Why the persistent overlook of Bitcoin and Lightning? Which ‘crypto’ do you think offers a superior money transfer mechanism and why?” posed Dorsey.
In response, Armstrong affirmed his intention to incorporate the technology into the platform and sought understanding and collaboration from both the wider community and Jack Dorsey in particular.
The Bitcoin layer 2 scaling solution, designed to enhance transaction velocities, has been developed as an answer to newer systems that offer swift and cost-effective transactions.
Significantly, Binance, which stands as the preeminent cryptocurrency exchange in terms of trading volume, embraced the lightning solution on July 17. This addition provided its users with the choice of using “LIGHTNING” for their deposit or withdrawal activities.
Coinbase global expansion plot is on track
For a long time, Coinbase has dominated the market share within the United States, but now, it’s setting its sights on rivaling Binance on the global stage.
Just last week, the company, which is listed on Nasdaq, unveiled its next phase of global expansion efforts, christened “Phase Go Broad, Go Deep”. This strategy is focused on broadening its product and service offerings in untapped markets.
Central to this initiative is obtaining permissions and licenses from regulatory bodies across various regions including the European Union, Canada, the UK, Brazil, among others. Furthermore, it has been revealed that the exchange is nearing its final stages of designating a “MiCA hub”, following the European Union’s green light on this pivotal legislation.
Company executives shed light on their plans, simultaneously voicing criticisms about the prevailing regulatory environment in the United States. They pointed to nations with more defined regulatory pathways as their “near-term priority markets.”
Even as global expansion remains a pivotal objective for the firm, the integration of the lightning network is anticipated to provide a competitive advantage. At the very least, it seeks to level the playing field with competitors who have already embraced this technology.
To date, Coinbase has showcased its dedication to expedited payment processes. They persistently innovate around their Coinbase Wallet, and are actively forging alliances with banking institutions and payment service providers to elevate the user experience.
