Square Cash expands bitcoin buying and selling to all users

  • Square Cash expands bitcoin buying and selling to all users

Square Cash expands bitcoin buying and selling to all users

Square Inc. shares climbed after Chief Executive Officer Jack Dorsey said the company is introducing Bitcoin trading for nearly all users of its cash payments app, signaling support for the volatile cryptocurrency. The option is not open to several states, including New York, Georgia, Hawaii and Wyoming, which have strict regulations around cryptocurrency trading. A user will be allowed to purchase only $10,000 worth Bitcoin per week.

Square CEO Jack Dorsey announced the new feature on Twitter.

Paul Condra, a Credit Suisse analyst, in an email, said: "We believe bitcoin and other crypto sales represent a potential mid/long term growth opportunity for Square and we are positive on the strategy". However, the application uses the average market price across major exchanges.

We support Bitcoin because we see it as a long-term path towards greater financial access for all, This is a small step.

Integrating Bitcoin trading into Square's cash app isn't without risk.

Square began allowing for merchants to accept Bitcoin in 2014.

The latest update lets you use your Cash balance to instantly buy and quickly sell BTC, and adding funds to your Cash app takes just a few taps. The cryptocurrency is held by Square on the user's behalf.

In a statement to TechCrunch, a spokesperson from Square said: "Cash App empowers people with access to the financial system, and our customers have shown interest in a simple, approachable way to buy and sell Bitcoin". The largest exchanges have suffered from slow trading as demand for crypto has skyrocketed.

On January 23, Stripe, a company that offers a commercial payments service, announced that it would stop processing payments denominated in bitcoin, citing increases in transaction fees and processing times.