Cash App introduced a new Bitcoin sending and receiving feature for its users, through which users can send and receive Bitcoin using the Lightning Network. On the 25th of October, Michael Rihani, Cash App Bitcoin Product Lead, announced this news through a tweet, and Cash App’s help page confirmed it.
The feature of sending Bitcoin was already in the Cash App, through which users can send Bitcoin by the Lightning Network, but there was no feature for receiving it at that time. Now, after this new announcement from Cash App, users can receive Bitcoin with the same method used for sending.
The reason behind choosing Lightning Network for sending and receiving Bitcoin by Cash App is that it is a second-layer solution. It has several powerful features, such as speeding up Bitcoin transactions and allowing users to make smaller purchases. It also reduces the costs of Bitcoin transactions as it routes transactions through channels without using the main Bitcoin blockchain.
About this new upgrade, the proponents of solutions said that it would help achieve the wide-scale adoption of the world’s biggest digital asset. Moreover, they said that people could use it for everyday purchases, which could help grow Cash App.
According to the Cash App website, Lightning will involve little to no fees, and users can use it to send smaller amounts of Bitcoin. As per the website, with the Lightning integration, there is a $999 limit every seven days. Cash App’s new feature of sending and receiving Bitcoin through Lightning is only available to US customers, per the website. Moreover, the website said this new feature is unavailable for New York customers.
However, Cash App is only available in the US and UK and has more than 44 million monthly users. It is a trendy mobile payment app in these regions, which Square launched.
It’s not the first step from Cash App regarding cryptocurrencies, but it previously took many steps, as in April, it announced a payment in Bitcoin. It was available for their app users, allowing them to receive all their paychecks in cryptocurrency.