McDonald’s, the fast-food empire, has announced that it is accepting cryptocurrency payments through Lightning Network in El Salvador, as the country’s recognition of Bitcoin (BTC) as legal tender has opened up new payment options for its citizens.
It has been reported by journalist Aaron van Wirdum after he visited a McDonald’s restaurant in El Salvador, where he was presented with a printed QR code directing him to an invoice page on Lightning Network.
However, McDonald’s had 19 locations across the Latin American country as of 2019. Although Bitcoin has succeeded as an investable asset, its adoption as a medium of exchange has been limited. Bitcoin payments were at the core of Satoshi Nakamoto’s 2008 whitepaper describing BTC as electronic cash.
The report said that Lightning Network will likely prove invaluable if El Salvador hopes to achieve the mass adoption of Bitcoin payments. Beyond immediate transactions, El Salvador’s Bitcoin gambit could prove successful by streamlining global remittances, increasing the wealth of its citizens, and attracting crypto-focused entrepreneurs to the country.
Likewise, El Salvador’s Bitcoin Law officially came into effect on Tuesday, proving to be a classic “buy the rumor, sell the fact” event for markets. Peak to trough, the BTC price crashed 19% between Monday and Tuesday, reaching a low of $42,900.
Thus, President Nayib Bukele confirmed Monday that his government had purchased its first Bitcoin. As of Tuesday, the country held 550 BTC in its reserves.