If you have been keeping up at all with fintech news this past month then you should be well accustomed to the overflow of bitcoin and cryptocurrency news that just never seems to stop coming. After Tesla CEO Elon Musk announced he was buying nearly €1.2 billion worth of bitcoin and announced that Tesla would soon accept it as a payment method, the entire cryptocurrency market went into maximum overdrive. Square, the parent company of electronic payment service Cash App, released a statement that in January of this year they saw over one million users purchase cryptocurrency for the first time ever on their platform. This announcement came one day after Square’s CFO Amrita Ahuja announced that they would be making an additional investment of close to €140 million in bitcoin, which brings their total amount of bitcoins to 8,027.
This is a huge leap for Cash App, as the company had three million users make transactions using bitcoin in 2020, and have now seen one million new bitcoin investors in just the first month of 2021. The recent bitcoin purchase has made the crypto worth 5% of the company’s total cash holdings as of December of 2020, and if the trend continues that number will only most likely climb. Ahuja commented on the purchase by saying “We feel that bitcoin is aligned with our purpose, which is economic empowerment” and that bitcoin is a way to empower more people to make financial transactions in whichever way they please. They seem to have a mindset which is very aligned with investing in the future, which is a requirement for any business to get ahead of the curve and keep customers happy.
The ability for users to transact using bitcoin on Cash App has actually been available since January of 2018. Cash App’s founder Jack Dorsey appears to fully support the decision for Cash App to fully invest in bitcoin as he has been a long time investor in the currency, believing that it will one day be the first worldwide single currency. Imagine a world where exchange rates and worrying about varying currencies while traveling or making business transactions is a thing of the past. It’s not all positive news and secure investments, as many speculators are still concerned about bitcoin’s wild volatility, as the huge number of new purchasers of the currency have led the price running wild. Despite this concern, investing in the possibility of a single currency digital currency seems to be a smart investment for fintech companies, despite the risk it inevitably carries.