The news: Block CEO Jack Dorsey announced three new Cash App services at the Bitcoin 2022 conference on Thursday, per CoinDesk.
- “Paid in Bitcoinallows Cash App users to automatically invest a portion of their direct deposits into Bitcoin within the app.
- With “Bitcoin Rallies“Cash App users can round payments to the nearest dollar, and the difference is automatically invested in Bitcoin.
- “The Lightning Network receives“allows Cash App users to receive Bitcoin through the Lightning Network – the app began allowing users to send over the network in January. The Lightning Network is a protocol built on the Bitcoin blockchain that allows transactions “off chain” between two parties, improving the scalability of crypto, by Cointelegraph. Functionality leave alone Cash App users send and receive Bitcoins to supported external wallets.
At the same conference, tennis star Serena Williams announced that she was working with Cash App to advance Bitcoin adoption, but did not provide details.
Why it’s worth watching: The new Cash App services make Bitcoin a stronger focal point within the app and reflect the brand’s desire to expand beyond fiat transactions.
- Cash App was one of the first mainstream payment apps to embrace crypto. Block began allowing Cash App users to buy, sell, and hold Bitcoin in 2018—PayPal doesn’t launch a similar service until 2020.
- Block wants Bitcoin to be a mainstay of Cash App. The firm has introduced new solutions to encourage Cash App users to adopt Bitcoin. In December 2020, Block revamped the Cash Card (a debit card linked to Cash App) to allow users to earn Bitcoin on their purchases. And during the holiday season last year, Block allowed users present the other bitcoin.
- Cash App services align with other Block initiatives. Block is work on a crypto hardware wallet intended to give users greater control over how they store and spend their cryptos. The company also helped launch the Crypto Council for Innovation (CCI) to “inform and encourage responsible public policy in cryptography”.
The big takeaway: Cash App’s new features streamline investing and buying Bitcoin, which could help break down barriers preventing users from getting started with Bitcoin. Twenty-one percent of American adults cited lack of knowledge about how to invest as the top reason for not investing in stocks, bonds, or crypto yet., by a 2021 CNBC and Momentive survey.
Simplifying these processes can make Cash App a more attractive provider for users and potentially increase the app’s payment volume: Cash App’s transaction volume is expected to increase 35.6% year-on-year another in 2022 and reach $116.14 billion, according to Insider Intelligence forecasts.