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Elon Musk Echoes Bitcoin Cash Supporters with Latest Tweet

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Wed, 07/14/2021 - 05:58
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Alex Dovbnya
Elon Musk has revived an old debate about Bitcoin's main scaling solution
Elon Musk Echoes Bitcoin Cash Supporters with Latest Tweet
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Elon Musk has taken aim at Bitcoin’s Lightning Network, echoing Bitcoin Cash supporters.

In a recent tweet, the eccentric billionaire is asking whether BlueWallet’s Lightning implementation requires “a money transmitter or other licenses” in order to operate in the U.S.    

Musk has revived an old argument pushed by the proponents of big block fork Bitcoin Cash about Lightning nodes qualifying as Money Service Businesses under FinCEN's regulations. Hence, critics argue that such transactions could be ultimately deemed illegal. 

However, according to Peter Van Valkenburgh, director of research at non-profit advocacy organization CoinCenter, a Lightning message is not a payment order.

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Since a Lightning node cannot steal a users’ money, there is no need for licensing, CoinCenter argues.

In his video explainer, Bitcoin evangelist Andreas Antonopoulos describes the concerns about governments banning Lightning transactions as “fearmongering.”

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.