Why this UK territory is adopting the Bitcoin Lightning Network

Gibraltar is increasingly known for its pioneering crypto regulations, support for blockchain development, and Bitcoin adoption. Cointelegraph YouTube Subscribe

Cointelegraph reporter Joe Hall traveled to Gibraltar to explore bitcoin (BTC) adoption on 'The Rock', as the peninsula is known locally, and how bitcoin adoption for shopping in the territory has an impact on business.

The visit was also an opportunity to visit Xapo Bank, the first private financial institution in the world to combine traditional banking with Bitcoin. Coinbase acquired its custodial business in 2019, making the US exchange the largest crypto custodian in the world.

The British Overseas Territory of Gibraltar is known for its pioneering crypto regulations, support for blockchain development and adoption of Bitcoin, with many retail businesses using the Lightning Network - a network layer two that allows off-chain transactions - to accept bitcoin as payment around the peninsula.

Albert Isola, the island city's Minister of Digital and Financial Services, told Cointelegraph:

"When you talk about adopting the use of bitcoin, is that going to come?" Yes, it is growing as more and more jurisdictions begin to regulate. What is ideal for me? The ideal is when there are enough countries that do this that we have an international standard regulation that everyone must comply with. So it will be huge, in my opinion."

In April this year, Gibraltar introduced a new regulatory package for Distributed Ledger Technology (DLT) service providers, providing clear guidance to crypto businesses regarding threats of market manipulation and insider trading.