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The thing is, Strike doesn't open LN channels for people. In fact, they only use LN to move money between custodial accounts they themselves are beneficial owners of. I can't for the life of me figure out why they'd use LN - or crypto at all - for this and not just an entry in the centralized database they already have tracking balances. Avoid regulation, maybe? But like why?

I've listened to an hour long Maller podcast and I simply don't get it.



Why are remittances so expensive if this is so simple? Maybe you are missing something here?

The function of lightning and the Bitcoin base layer is settlement and clearing, those 2 things are non-trivial.

Then there is also the legal aspect, which cannot be detached from those.


Generally the answer is regulation. So I suspect that is quite likely the answer here. Although since they are an MSB in at least the US they answer could just as easily be crypto fever.

For a centralized entity settlement and clearing aren’t hard. You have a money pile and a debt facility in both countries, then you wire money to net settle once in a while.




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