Cash App users can now send and receive Bitcoin payments instantly via the Lightning Network, the company announced. Previously, this Lightning function on the popular payments app was limited but now Cash App users can send and receive Bitcoin via the fast solution.
Michael Rihani, Cash App Bitcoin Product Lead, announced on Twitter that Cash App users can now send and receive Bitcoin using the Lightning Network.
The Lightning Network speeds up Bitcoin transactions and reduces costs by routing transactions through channels without needing to use the main Bitcoin blockchain, enabling people to use it for everyday purchases.
Cash App is a popular mobile payment platform launched by fintech giant Block, a company run by ex-Twitter CEO and Bitcoin optimist Jack Dorsey. The app is only available in the US and UK but boasts over 44 million monthly users.
Via Lightning, there are “typically little to no fees involved, and it’s used to send smaller amounts of Bitcoin,” The Cash App website says, adding that there is a $999 limit every seven days with the Lightning integration. Currently, sending and receiving Bitcoin via Lightning on Cash App is only available to US customers (except in New York State).
Cash App users can deposit $10,000 worth of Bitcoin every seven days and are provided a tax form for in-app accounting purposes. It is also possible to automatically invest a portion or all of one’s direct deposit into Bitcoin by using the “Paid in Bitcoin” feature with no fees. Otherwise, regular transaction fees are typically around 2%.
The Lightning Network currently has around 87,000 payment channels and 4,570 BTC locked in, Cointelegraph recently reported. However, adoption has been somewhat slow, with the number of coins on Lightning representing a tiny fraction of the 19 million BTC currently in circulation.
In April, Block announced a “paid in Bitcoin” for Cash App users, which allows people to receive all or a portion of their paycheck in the cryptocurrency.
Jack Dorsey has long spoken about how Lightning will be a game-changer: Last year, before he left Twitter, he said he wanted to integrate the function into the social media platform.