Cash App Has Dropped Its Zero Fee Bitcoin $Cashtag Transfers
2024-12-05 13:16:31 Primitive Reading

 

From decrypt by Adrian Zmudzinski

Source: Shutterstock

Cash App—the payment application jumpstarted by Twitter founder Jack Dorsey—has ended its support for free peer-to-peer (P2P) Bitcoin payments.

“Cash App will no longer support sending and receiving Bitcoin between $cashtags,” starting on Dec. 20, a recent announcement reads. However, customers outside of New York can still use Lightning Network to receive or send Bitcoin.

Furthermore, “Bitcoin Gifts will also still be available,” the company said. The changes only involve Bitcoin support, with transfers made in fiat currency not being affected.

A Cash App spokesperson told Decrypt that the decision was taken “to focus our internal resources on the products and services that Bitcoin holders on the app use and value most.” The company representative also claimed that the firm remains “committed to building innovative, accessible products for customers who use Bitcoin.”

Cash App was launched in 2013 under its original name Square. It started as a P2P payment system similar to PayPal’s Venmo. Since then, it has expanded to support Bitcoin transfers and acquisitions, stock investments, savings, lending, and pre-paid Visa cards.

While the company does not share the statistics of Bitcoin usage on the platform, its regulatory filings show that Bitcoin support is making money for Cash App. Documents show that in Q4 2023 the firm generated over $65 million in Bitcoin gross profit—an increase of about 90% compared to Q4 2022.

Late February reports showed that the Block Inc. app saw “the total sale amount of Bitcoin sold to customers—which we recognize as Bitcoin revenue—was $2.52 billion, up 37% year over year.” BusinessDasher data shows that the payment super-app currently has over 57 million active users on its platform.

  The internal changes follow May reports that Cash App’s features prompted United States federal prosecutors to investigate its compliance practices. Internal documents purportedly admitted that “due to the nature of the product,” its customers “do not appear to leave stored balances in Cash App very long,” leading to limited “ability to block a stored balance or reject funds.”

Disclaimer: This specification is preliminary and is subject to change at any time without notice. Amazon Finance assumes no responsibility for any errors contained herein.

Recommended reading
Bitcoin whales employ ‘wait-and-see strategy’ as price hovers at $96K

10-22     admin     16845 Reading

How to pay your bills with cryptocurrency

10-22     admin     13307 Reading

Europe's Economic Crossroads: Recession Fears and S&P Global's Contrasting Outlook

10-22     admin     7223 Reading

Bitcoin finds a new purpose in DeFi through new mining-backed model

10-22     admin     17310 Reading

Coinbase Adds Apple Pay Onramp Support for Bitcoin, Dogecoin and More

10-22     admin     10651 Reading

How this smart contract platform can potentially deliver unlimited scalability

10-22     admin     19505 Reading

Ripple's XRP, Bitcoin Take the Hit as Martial Law in South Korea Disrupts Markets

10-22     admin     15872 Reading

The Crypto DevRel Trap

10-22     admin     9026 Reading

Aptos Financial Ecosystem Analysis

10-22     admin     7164 Reading

State of Nym Q3 2024

10-22     admin     19797 Reading

Wall Street Bitcoin Miner BTC Digital Deploys 2,000 BITMAIN T21 Miners

10-22     admin     13054 Reading

Why Is the Future of Cardano (ADA)? News Analysis and Price Prediction [2025–2030]

10-22     admin     12791 Reading

The Secret Life of Order Types: How Hidden Orders and Dark Pools Shape the U.S. Market

10-22     admin     7732 Reading

How to Vote on Reflexer DAO Proposals

10-22     admin     8850 Reading

peaq: A Layer-1 Blockchain Purpose-Built to Power DePINs (Decentralized Physical Infrastructure Networks)

10-22     admin     12976 Reading