And the Crowd Goes Wild
The news that Square, a large payment company, obtained a BitLicense to operate as a cryptocurrency platform sent the stock soaring. Some might argue that the rise in market cap for Square has to do with the company’s core business, but another viewpoint on the rise is that investors gave Square a vote of confidence in it forward-thinking direction and image.
Acquiring a BitLicense is notoriously difficult and expensive, but the company saw fit to push ahead here to serve what they believe is the future of payments.
This means Bitcoin trading is now available on the Cash app in 48 states, leaving just Georgia and Hawaii as the only two that don’t allow bitcoin trading on the app. Square shares are up 178% over the past 12 months and Bitcoin also has recovered some ground on the move. Traders take this as a sign of legitimacy for the digital coin and a vote of confidence in the industry as a whole.
“DFS is pleased to approve Square’s application and welcomes them to New York’s expanding and well-regulated virtual currency market. DFS continues to work in support of a vibrant and competitive virtual currency market that connects and empowers New Yorkers in a global marketplace while ensuring strong state-regulatory oversight is in place,” Superintendent Maria Vullo said in a statement.
Good things are ahead for Square
The app launched in 2015 and is growing at a faster rate than PayPal’s Venmo, according to Nomura Instinet. Since early 2016, downloads on Square Cash app downloads averaged 128 percent year-over-year growth each month versus Venmo’s 74 percent growth, according to Nomura.
Square had 7 million active customers on its money-transfer app in December alone, Square said in its recent quarterly letter to shareholders. In fact, Many of those customers have been using the Cash app more like a bank account than the company intended, Dorsey said in May. This gave Dorsey pause and said that the company would be exploring banking options in the near future.