According to recent reports Square, a leading tech company, has been granted a coveted BitLicense by New York State. This permits them to engage in cryptocurrency trading activities in a region known for its stringent regulatory environment in the United States. As of now, only eight other companies have achieved this notable distinction.
Square Loves Bitcoin
Square is a technology firm that introduced a robust alternative to mobile payment systems like PayPal, known as the Cash App. Recently, they rolled out a feature enabling users to transact in Bitcoin, including buying, selling, and transferring it directly within the app. went live in late 2017 Initially available to select users, this feature is gradually being introduced to a broader audience over time.
Unlike charging a transaction fee for Bitcoin trades, Square generates revenue through a method known as the bid-ask spread. Essentially, when you purchase Bitcoin via the Cash App, they sell it to you for a slightly higher price than what they acquired it for. This makes transactions potentially more cost-effective for users compared to platforms like Coinbase, which levy an additional fee on top of the spread.
Escape from New York
A significant challenge Square encounters is limiting access for New York-based users due to the state's rigorous cryptocurrency regulations. A business must secure a BitLicense to legally engage in crypto transactions, a challenging requirement in New York's environment.
Obtaining this license requires demonstrating compliance with an array of intricate regulations, ensuring businesses adhere to strict legal standards including the prohibition of anonymous transactions. KYC and AML standards To date, only nine companies have successfully secured New York's BitLicense, Square being one of them thanks to its expansive reach and innovative platform.
Square is led by Jack Dorsey, also known for his role as Twitter's CEO. BitLicense Dorsey has been a proponent of Bitcoin, recently declaring his belief that it could become the dominant global currency for cross-border trading within a decade. Coinbase .
Jack and Bitcoin, Hand-in-Hand
Some media outlets mistakenly interpreted Dorsey's predictions, assuming he meant Bitcoin would entirely replace traditional currencies in ten years. However, he likely referred to its growing role in international trade and transactions.
He envisions a future where Bitcoin might become the universal currency both globally and on the internet, possibly taking over a decade to achieve.
This vision does not imply the eradication of all traditional currencies worldwide.
Specifically, Dorsey said:
For cryptocurrency to gain widespread adoption, it first needs to become more user-friendly and accessible. Apps like Square's Cash App illustrate the type of innovations needed in the crypto space to facilitate broader adoption.
Such accessibility will ultimately make cryptocurrencies more appealing for adoption by businesses and consumers alike.
Getting Closer to Adoption
Robert, serving as News Editor at Blockonomi, advocates for a digital economy rich in freedom, autonomy, and privacy and has been engaged with the crypto community for a significant duration. You can reach him at [email protected].
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