Over 18 months of beta testing with ~1,000 users moving €9M+ through Bitcoin-to-euro rails, the pattern became clear: the bottleneck wasn't Bitcoin technology.
Getting paid in Bitcoin creates practical off-ramp friction:
-> 3+ day waiting periods on exchanges (compliance checks)
-> Neobanks flagging/closing accounts based on "Bitcoin" in transaction descriptions
-> vIBAN infrastructure wasn't available for crypto-native companies in the eurozone
Lightning solved payment speed, but banking rails remained the chokepoint.
Three infrastructure developments made daily Bitcoin spending viable:
-> Lightning Network maturation: Trustworthy Layer 2 with accessible self-custody (Breez SDK, Phoenix, etc.)
-> vIBAN availability: Banking infrastructure that doesn't automatically flag crypto conversions
-> Bridging solutions: Self-custody users can deploy holdings for daily expenses without compromising sovereignty
Real-World Friction Test
Lightning payment (50k sats) → instant euro conversion → Visa payment in ~30 seconds. This works because the vIBAN infrastructure removed banking blocks, not because Bitcoin tech improved.
Medium of exchange utility isn't just ideological—it structurally supports the store of value thesis. Without spending on infrastructure, "digital gold" criticism holds more weight.
What's Next: Global Remittances on Bitcoin Rails
The same infrastructure enables instant cross-border payments:
€100 from Tallinn → BTC conversion → Lightning Network → rupees in Bangalore account
Real-time settlement, no intermediary banks, cents in fees vs. 8-10% traditional costs.
Challenges:
-> Liquidity at both endpoints (EUR/BTC and BTC/INR)
-> Regulatory compliance across jurisdictions (Europe's MiCA is clearer than most regions)
-> On/off-ramp partnerships in destination countries
Opening Infrastructure
Next phase: opening API protocols for other builders. Similar to how Breez SDK enabled our self-custodial implementation, letting developers create niche solutions without rebuilding banking/compliance infrastructure.
What specific friction points still block daily Bitcoin usage in your region?
Are you using Bitcoin to send funds abroad?
How do other regions handle liquidity for Lightning-based remittances?
The technical problems are largely solved. The regulatory/banking infrastructure remains variable by jurisdiction.
Full story including remittance use cases and detailed architecture: New Money Matters Edition 10 - weekly newsletter on Bitcoin infrastructure, Lightning development, and building tools for Bitcoin payments: https://newmoneymatters.substack.com/p/living-the-standard
