Manánguri on Nostr: It's a bearer token. Works the same way as bearer bonds. The issuer of the bond, a ...

It's a bearer token. Works the same way as bearer bonds. The issuer of the bond, a bank usually, is the custodian of the money, and will hand that money over to whomever cashes in the bond, no questions asked.

The CashU mint that minted the token, will melt it back to lightning, with no questions like KYC or email asked the way other custodial lightning wallets are required to now days.

You can't give someone lightning Bitcoin if they don't have a lightning wallet. You can give anyone Cashu Bitcoin as nothing more than a string of text.

To spend it, they go to cashu.me or nutstash.app and paste in the text, and they can immediately spend the Bitcoin via the lightning network.

Setting up a non-custodial lightning wallet, using Phoenix or Zeus and an LSP, still takes effort and a significant investment to make the setup cost worth it.

And custodial lightnings wallets are now requesting full KYC.

Cashu is an alternative to a KYC custodial lightning wallet.

Bearer tokens are just a tool that in certain situations, can be useful.