Paying for your lunch with bitcoin? In a sign that this new reality is closer than ever, Cash App has integrated with Lightning Network to allow US users to transfer bitcoins for free.
The application, that Twitter (TWTR) – Get the report from Twitter, Inc. Founder Jack Dorsey launched as a subsidiary of Square (now known as Block) in 2013, is a popular way to transfer money via phone – last September it had 70 million annual users.
What is lightning?
The new feature, which Cash App had already been test with some customers in previous months, uses decentralized Lightning technology to ensure that bitcoin transactions take place instantly and are confirmed as legitimate via the blockchain.
“Buy tacos, tip your favorite Twitter comedian, or send money to a friend overseas — anywhere lightning is accepted,” Cash App wrote in a post. Posting on Twitter announcing the launch.
In theory, the addition of Lightning will allow Cash App users to do everything from send bitcoin to family members across the world to use it to buy something as small as a snack at the mall.
In reality, very few traditional merchants currently accept bitcoin for small transactions, although this is starting to change, with apps like Lightning Pizza. recently partnered with Domino’s to facilitate bitcoin pizza orders.
Is Dorsey behind all this?
Dorsey, who stepped down as CEO of Twitter (TWTR) – Get the report from Twitter, Inc. in November 2021, focused its attention on cryptocurrency instead of social media for years before the announcement. A heavy promoter about bitcoin in particular, he frequently talks about its potential and pushing businesses to start adopting it more.
The announcement does not mention whether Cash App users will be able to receive payments in bitcoins – this feature should be worked on for bitcoin to become as mainstream as regular currency.
At $44,167.70, Bitcoin is down significantly from a high of around $69,000 in November. But while the $70,000 milestone has yet to be passed, the cryptocurrency is on a general upward trajectory as more people seek to adopt it and its use becomes more mainstream.
“”#Bitcoin will unite a deeply divided country. (and eventually: the world),” Dorsey tweeted in August.