Square Cash App Lets You Buy and Sell Bitcoin
San Francisco-based Square Cash, a merchant aggregator and financial services company, has started a new pilot feature on that allows users to invest in Bitcoin.
Square, the parent company of the aforementioned Square Cash, was created in 2009 to offer a wide range of financial services including its payment reader app, register platform and much more.
The company’s financial app, which is used for making payments between friends, just recently exceeded its major competitor, Venmo.
Its stock value has been making steady upward movement in recent quarters, catching up to popular mobile platforms in other industries.
A while back, the firm allowed merchants trading on the platform to accept Bitcoin as payment.
This preceded the new cryptocurrency feature that allows a limited number of users to trade using Bitcoin.
The trial version, however, does not allow users to make payments to their friends using Bitcoin, which is the application’s primary function.
Some Square Cash customers took their voice to social media and expressed their joy when the company launched the new feature—probably to the delight of Jack Dorsey, who is the CEO of both Square and the social media site, Twitter.
The beta version of the new cryptocurrency trading feature has a very basic interface.
Users can access the Bitcoin functionality by swiping right from the usual Cash Card page.
The Bitcoin trading page has a performance graph that shows the value trend between the U.S. dollar (USD) and Bitcoin.
The graph analyzes the performance of both currencies over the last few hours, days, months or years to help users make correct forecasts when buying or selling Bitcoins.
A user who decides to purchase or sell Bitcoins can easily access the buy and sell buttons.
Square Cash’s Bitcoin trading feature proceeds to generate the recipient’s wallet address.
However, the balance in the private wallet address currently appears to be different from the user’s actual Bitcoin holdings.
This means the platform is probably using pooled wallets for holding user funds rather than storing private keys in the user’s device, a functionality similar to how the Coinbase platform works.
The firm is yet to lay a clear fee structure on the transaction cost, or whether there will be daily buying and selling limits.
Dorsey has publicly endorsed cryptocurrencies and spoken on the benefits of blockchain technology, acknowledging that he is a Bitcoin fan and has personally invested in it.
In the recent past, he has termed blockchain technology as “the next big unlock” which has already outshined the world’s traditional currencies.
In a press statement, a Square representative said that the company always listens to customers’ feedback, and further established that most of them are interested in Bitcoin investments.
The spokesperson also confirmed they are working to make this trading experience faster, easier and available to all users.
With Square Cash adding the new feature, the public will have more access to cryptocurrencies—thus getting a chance to participate in the fastest growing global financial system.
Given the massive widespread adoption of cryptocurrencies in the corporate world, plus their skyrocketing prices and high market capitalization, it is likely that major financial companies will soon start offering Bitcoin and other blockchain-related products as legitimate investment options.