Cash App Adding Lightning Network Support for Bitcoin Payments

Following an eventful 2021 (and a recent price crash), Bitcoin is looking to have a big year in 2022. Specifically, while many in the public see the crypto asset as a speculative investment play, a greater number of companies are working to make Bitcoin payments a more common reality. Among them is Block, Inc. (formerly Square Inc.) which has just announced plans to expand its crypto payment options.

As TechCrunch reports, the popular Cash App will be integrating with the Lightning Network. While the new capability began rolling out to some customers in recent days, the company says it should reach all U.S. users in the coming weeks. Notably, the offering will be made possible via the Lightning Development Kit, which comes from Block’s recently-renamed Spiral company (formerly Square Crypto).

Once Lightning support is rolled out to all users, they’ll be able to send Bitcoin payments for free. A statement from Cash App explained, “Customers can send Bitcoin internationally from Cash App to any external compatible wallet to a friend, family members, a self-managed wallet, or any merchant that accepts Lightning Network payments, with zero fees.” Previously Cash App customers could send Bitcoin to other users on the platform, while external transfers may have incurred fees.

The addition of Lightning has been an oft-requested feature ever since Cash App enabled Bitcoin trading. Furthermore, Block Inc. CEO and former Twitter CEO Jack Dorsey experimented with the Lightning Network via Twitter back in 2019. Outside of that, Dorsey has been a big supporter of Bitcoin while shunning other cryptocurrencies. Also in 2019, when asked by a customer if Cash App would offer other crypto assets, Dorsey replied, “Nah” before sharing a lengthier response, stating, “Bitcoin is resilient. Bitcoin is principled. Bitcoin is native to internet ideals. And it’s a great brand.”

More recently, Dorsey has also shared that Block intends to get into the Bitcoin mining business. His intentions were first discussed in an October 2021 thread, in which he wrote, “Square is considering building a Bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide. If we do this, we’d follow our hardware wallet model: build in the open in collaboration with the community.” Then, last week, the CEO declared, “We’re officially building an open bitcoin mining system.”

Overall, Cash App’s Lightning integration is notable for a few reasons. For one, it’s great news for users who may be seeking an easy-to-use solution for Bitcoin payments and who don’t want to have to worry about fees. Meanwhile, the adoption is also significant for the newly-minted Block Inc. as it demonstrates how one of the company’s businesses can create tools that can then be employed by other divisions. Lastly, given the popularity of the Cash App already, this could well increase the use of Bitcoin and Lightning Network going forward. Thus, 2022 could certaintly be a big year for BTC and cryptocurrencies in general.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Robinhood Reveals More Details on Upcoming Retirement Account

After officially announcing plans for retirement accounts during an earnings call last month, Robinhood has now revealed more details about the upcoming feature and opened a waitlist for customers. First, Robinhood Retirement will offer both Roth and Traditional IRAs to users. With these accounts, customers will be able to invest in stocks and ETFs. Additionally, accountholders will be able to craft a custom portfolio and will be able to view...

Discover Announces 5% Bonus Categories for First Quarter of 2023

The popular Discover It card — which features 1% on all purchases as well as a slate of bonus rotating categories each quarter — has revealed what purchases will earn cardholders that 5% bonus starting January 1st. For the first quarter of 2023, Discover It cardholders can earn 5% back on grocery store, drug store, and select streaming service purchases. However, there are a few asterisks to note with this offer....

AllWork Raises $4.9 Million From FINTOP Capital 

A FinTech focused on freelancer payroll has closed a significant early-round investment. This week, AllWork announced that it had raised a $4.8 million round. The Series A was led by Nashville-based FINTOP Capital with no other participants. As a result of the transaction, FINTOP's Chris Haley and Rick Holton will join AllWork's board of directors. Previously, AllWork closed a $3.8 million seed round in 2019, bringing their to-date funding total to $8.7...