Square Announces Cash App Bitcoin Sales in All 50 States
Multi-faceted FinTech firm Square had some big news to share yesterday, announcing that users of their Cash App could now purchase Bitcoin regardless of which state they reside. In a tweet sharing the news, Square declared “Red, white, and Bitcoin,”accompanied by an image of a bald eagle carrying a Bitcoin logo ‘B.’ The 50-state milestone comes just weeks after the app celebrated clearing a regulatory hurdle in New York, clearing the way for Bitcoin trading there.
As The Next Web reports, the ability to reach all 50 states follows a few regulatory changes. At last check, following the Empire State’s approval, the holdouts were Wyoming, Georgia, and Hawaii. While Wyoming recently removed their double reserve requirement for cryptocurrencies, it’s unclear what exactly has changed the situation in Georgia and Hawaii.
The ability for Square to offer Bitcoin trading to their users in all 50 states is certainly welcome news not only for users but also for Square itself. The company’s latest quarterly earnings show them doubling their profits made from crypto sales, climbing from a net of $200,000 in Q1 2018 to $420,000 last quarter. Notably the company also saw $37 million in Bitcoin purchased on their platform in Q2. That said, Square has admitted that they don’t view the selling of Bitcoin as a big money-maker in and of itself, instead saying that the feature is meant to increase the utility of the Cash App overall as it battles other P2P options like Venmo, Zelle, and Apple Pay Cash.
Unfortunately Square’s latest Bitcoin expansion comes as the cryptocurrency is nearing a new low for the year. Despite a promising rally last month, Bitcoin dipped below $6,000 today and was hovering just above that price at press time. Meanwhile other top cryptocurrencies are also getting hit, with Ethererum down more than 14% for the day. ETH is currently priced at $260 — far from the $831 it had back in May before it began sliding.
While various cryptocurrencies may be going through (another) rough patch at the moment, there’s no doubt there is still tremendous interest surrounding them. At the same time, the concepts of crypto wallets and exchanges still elude many would-be buyers, which is why the Cash App’s embrace of Bitcoin trading has been both meaningful to the market and successful among users. Because of this, Square’s ability to sell Bitcoin — and perhaps other currencies down the road — in all 50 states is a notable milestone that’s likely to have a positive impact on the crypto space.