Cash introduced Bitcoin trading in a pilot program for a small group of people back in November. A more comprehensive rollout happened in January of this year, when founder and CEO Jack Dorsey, who holds the same leadership position at Twitter, announced that the app would now support Bitcoin trading for most Cash customers. He stated that they viewed Bitcoin as a “long-term path towards greater financial access for all.”
At the time, however, users from certain states were excluded from being able to use this feature due to financial regulations and licensing issues. For context, New York was one of the states initially excluded from this nation-wide roll out. Square Inc, the company behind Cash, had to apply for a “BitLicense” from the New York Department of Financial Services. Square was the ninth company to be approved for a virtual currency license in New York, which has become for its stringent regulations when it comes to cryptocurrencies. But as of today, Cash users of all of America’s 50 states can buy and sell Bitcoin.
This is definitely a crucial step towards mainstream adoption because buying Bitcoin is incredibly seamless on the Cash app. Users can simply link their bank account or cards to buy Bitcoin on their existing Square account. One of the other reasons is the demographics of the people who use the application. Cash is often used to send money to friends and family where users split and pay bills. The financial services application is often used by a younger demographic, which is similar to the customers its primary competitors, Venmo and Paypal, target.
Several industry experts have speculated that implementing Bitcoin into Cash’s core functionality is also underway where users can pay each other with Bitcoin.
Sarah Friar, the CFO of the company, stated that “there is a real growth under the hood” when asked about the importance of Bitcoin to the application’s performance. At Consensus 2018, Jack Dorsey also stated that he hoped Bitcoin would be the internet’s native currency. The company has also had a 100 percent growth rate in cryptocurrency profits in Q2 of 2018, regardless of the bear market during that period.
As it stands, major tech companies and retailers have definitely shown major interest in cryptocurrencies and its underlying technology, blockchain. So rampant merchant adoption, coupled with the seamless ability to buy and sell cryptocurrencies is a step in the right direction.