Square, a mobile payments firm, disclosed that its Cash App will allow its customers to not only buy bitcoins but also sell them in the same app. The company disclosed that the facility will become available in all 50 States in the United States. This is one more case of how some sections are continued to repose faith on the digital coin despite the price dropping below $6,000 level for a brief period. Also, the ambiguity is not impacting the development process in the related field.
Square is co-founded by Jack Dorsey, who is the CEO and co-founder of Twitter. His interest in bitcoin is well-known as he foresaw the virtual asset becoming the single biggest currency in a decade’s time. The firm disclosed its service expansion with the help of a tweet though it has rolled out the service to investors initially, coindesk.com reported. In January, the company has launched the Cash App officially with bitcoin purchasing option after a testing phase commenced in 2017.
At the same time, the company preferred not to offer the service in the States like Georgia, New York, Hawaii, and Wyoming. That is mainly because of the limitation imposed by regulators on transactions involving bitcoin. There are a number of individual States that are adopting their own regulations as far as the adoption of the cryptocurrencies is concerned. That is due to lack of federal regulations governing the emerging sector.
The lack of coordination or regulations was quite evident when Coinbase has preferred to suspend its bitcoin buying service in Hawaii in 2017. The decision was taken after the State regulators have slapped a double reserve requirement on the cryptocurrency exchange. This would mean that such exchanges would be required to maintain cash reserves that were equal to that of any digital currency funds and held for its customers. Such confused conditions prevail in some of the States thus impacting the growth of the cryptos.
Square has expanded the option in March to Wyoming residents. The company has taken the decision after the Cowboy State has passed a bill that removed the controversial double reserve requirement. This was a big headache for those involved in cryptocurrency exchanges and virtual currencies. However, those States wanted to protect the interests of investors and preferred to be more cautious in dealing with them.
Significantly, Square has received “BitLicense” in New York, and that made it as one of the handful digital currency services provider that is enjoying operations in the State. The company did not reply to queries in respect of any change in policy in Hawaii and Georgia. Ambiguity from the regulator is having its impact on not only trading of virtual assets but the adoption pace too.
Earlier, Square has claimed that its bitcoin service has delivered a small margin of approximately $420,000 during the June quarter of the current year. However, for comparison purposes, this is double than what the company has witnessed in the first three-month period following the launch of its service.