Crypto: another step towards the mainstream
On 18th June, it was announced that the online payments company Square Inc., had become the ninth company to be awarded a so-called ‘Bit License’ by the New York Department of Financial Services. The license will allow users of Square’s Cash App in New York State to buy and sell crypto. New York is considered one of the most difficult states to obtain a cryptocurrency license, due to its strict requirements and comprehensive due diligence. We see this as a positive for wider crypto adoption, in part because of the growing popularity of Cash App.
Some commentators have speculated that the software in Square’s retail payments system, which is an end-to-end package popular with coffee shops and restaurants, has already been embedded with cryptocurrency functionality that remains dormant, meaning the dream of buying your morning coffee with Bitcoin may yet be realised.
Jack Dorsey, founder of Square and co-founder of Twitter, has been one of the industry’s most vocal cryptocurrency enthusiasts. This latest development secures Square’s position as a potential rival to incumbent cryptocurrency exchanges. And while the Square news in itself doesn’t change the landscape, the question we would ask is… now that Square has gone down this road, who might follow?