Alby Bitcoin Payments + GitHub Copilot (VS Code): Complete MCP Integration

Alby Bitcoin Payments is a MCP server that Connect any bitcoin lightning wallet to your agent to send and receive instant payments globally with your agent..

When integrated with GitHub Copilot (VS Code), you can:

• Send Lightning Network payments instantly
• Generate invoices to receive Lightning payments
• Check current Lightning wallet balance

This guide provides step-by-step instructions to set up Alby Bitcoin Payments in GitHub Copilot (VS Code), including configuration, examples, and troubleshooting.

What You'll Achieve

After completing this setup:

• Alby Bitcoin Payments will be fully integrated and operational
• You can use Alby Bitcoin Payments tools directly in GitHub Copilot (VS Code)
• All Alby Bitcoin Payments capabilities will be available for your workflows
• Access to 5 different tools

Prerequisites

Before starting, ensure you have:

• Nostr Wallet Connect connection string from Lightning wallet
• GitHub Copilot (VS Code) installed and configured
• Compatible operating system (Windows, macOS, Linux)

Installation

Step 1: Install Alby Bitcoin Payments

Configuration

Step 2: Configure GitHub Copilot (VS Code)

1. Locate your configuration file:

   • Windows: .vscode\\mcp.json in your project directory
   • macOS: .vscode/mcp.json in your project directory
   • Linux: .vscode/mcp.json in your project directory

2. Add server configuration:

{
  "mcpServers": {
    "alby-bitcoin-payments": {
      "command": "alby bitcoin payments",
      "args": [],
      "env": {
        "NWC_CONNECTION_STRING": "nostr+walletconnect://...",
        "ALBY_AUTH_TOKEN": "bearer_token_abc123"
      }
    }
  }
}

3. Restart GitHub Copilot (VS Code)

Completely quit and restart GitHub Copilot (VS Code) to load the new configuration.

Examples

Once configured, you can use Alby Bitcoin Payments in GitHub Copilot (VS Code):

E-commerce Integration

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Ask GitHub Copilot (VS Code): "Create invoice for $25 subscription payment"

Expected Result: undefined

Micropayments for Content

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Ask GitHub Copilot (VS Code): "Pay 100 sats for premium article access"

Expected Result: undefined

Global Remittance

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Ask GitHub Copilot (VS Code): "Send $50 worth of Bitcoin to family member"

Expected Result: undefined

Testing Your Setup

1. Start a new conversation in GitHub Copilot (VS Code)
2. Ask GitHub Copilot (VS Code) to list available tools
3. Try using Alby Bitcoin Payments functionality

Test prompts:

• "What MCP tools are available?"
• "Use Alby Bitcoin Payments to help with my code"
• "Show me what Alby Bitcoin Payments can do"

Troubleshooting

Common Issues

MCP Configuration Not Loaded

Symptoms: MCP tools not appearing, Copilot does not recognize MCP server

Cause: Configuration file not in correct location or invalid JSON

Solution:

• Verify .vscode/mcp.json exists in project root directory
• Check JSON syntax is valid (no trailing commas, proper quotes)
• Reload VS Code window after making configuration changes
• Check VS Code Developer Tools (Help > Toggle Developer Tools) for errors

MCP Server Not Starting

Symptoms: Tools listed but not responding, Server connection errors

Cause: Server command path incorrect or dependencies missing

Solution:

• Test the MCP server command independently in terminal
• Verify all server prerequisites are installed
• Check that command path is correct (use absolute paths if needed)
• Ensure required environment variables are set in mcp.json
• Review VS Code Output panel for MCP server error messages

GitHub Copilot Subscription Required

Symptoms: Copilot features grayed out, Unable to access Copilot Chat

Cause: No active GitHub Copilot subscription

Solution:

• Sign up for GitHub Copilot subscription (Individual, Business, or Enterprise)
• Verify subscription is active in GitHub account settings
• Re-authenticate GitHub Copilot in VS Code
• Check that VS Code is using correct GitHub account

VS Code Version Too Old

Symptoms: MCP configuration ignored, No mcp.json recognition

Cause: VS Code version below 1.99 does not have native MCP support

Solution:

• Update VS Code to version 1.99 or later
• Check current version: Help > About
• Download latest version from code.visualstudio.com
• After updating, reload window and verify MCP support

{server_name} Tools Not Working

Symptoms: Server connected but tools fail, Error messages when invoking tools

Cause: Server-specific configuration or authentication issues

Solution:

• Verify all required environment variables for {server_name} are set
• Check {server_name} documentation for specific prerequisites
• Test {server_name} with another MCP client to isolate issue
• Review error messages in VS Code Output panel for specific failures

Alby Bitcoin Payments not appearing in GitHub Copilot (VS Code)

Symptoms: Server not listed, Tools not available

Cause: Configuration or installation issue

Solution:

• Verify configuration syntax
• Check Alby Bitcoin Payments installation
• Restart GitHub Copilot (VS Code)
• Check logs for error messages

Next Steps

Now that Alby Bitcoin Payments is integrated with GitHub Copilot (VS Code):

• Explore all Alby Bitcoin Payments capabilities through GitHub Copilot (VS Code)
• Check out other MCP servers that work with GitHub Copilot (VS Code)
• Join the MCP community for tips and support
• Consider contributing to Alby Bitcoin Payments development

Need Help?

• Search for Alby Bitcoin Payments documentation
• Check the GitHub Copilot (VS Code) MCP guide
• Join the MCP community discussions