El Salvador has made significant strides in adopting cutting-edge financial technology, with the latest development being the integration of the Lightning Network into its Bitcoin ATMs.
Athena Bitcoin, a company operating state-owned cryptocurrency ATMs in El Salvador, plans to integrate the Lightning Network into 100 of its machines over the next few months.
This integration will allow for faster transactions and lower fees, and will be implemented in phases, starting with 100 Chivo ATMs by December 2023 and expanding to the remaining kiosks in Q1 2024.
The Lightning Network is a layer 2 payment protocol that operates on top of blockchain networks like Bitcoin, allowing for faster and cheaper transactions without recording the data on the main network. Currently, only 3.7% of the world’s crypto ATMs support this technology.
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This development comes after El Salvador’s leader, Nayib Bukele, made Bitcoin a legal tender in 2021 and recently announced his intention to run for reelection in 2024. Bukele has been a strong advocate for the adoption of new technologies, and his government has taken steps to encourage innovation and attract foreign investment. In April 2023, he eliminated all taxes on technology innovations, a move that could make El Salvador an attractive destination for entrepreneurs and businesses.
Details on the implementation timeline and specific ATM locations are not available at this time.
