Jack Dorsey’s Cash App has announced that users will soon be able to send stablecoin payments. The new feature will support multiple stablecoins and networks when it becomes available.
Cash App has also launched a feature that will allow users to send USD through the Bitcoin Lightning Network.
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Cash App Embraces Stablecoin Payments
Jack Dorsey is steering Cash App to support stablecoins, marking a substantial shift for a company that has built its identity around Bitcoin purity. Dorsey, who insisted Bitcoin alone could anchor everyday payments, is moving Cash App towards supporting dollar-backed stablecoins. The stablecoin pivot will allow the firm to integrate into the traditional financial infrastructure instead of upending it. The peer-to-peer and banking platform was one of the first to offer Bitcoin balances, with Dorsey arguing that the flagship cryptocurrency could become irrelevant if it doesn’t become a tool for everyday payments. The company said in a statement,
“For the first time, Cash App will soon provide access to stablecoins, allowing customers to send and receive digital dollars nearly anywhere in seconds.”
Cash App’s stablecoin push will make the digital assets interoperable with users’ cash balances. Users will be able to deposit stablecoins as US Dollars in their cash balances and send stablecoins to other wallets.
The platform’s stablecoin feature will initially launch with the Solana blockchain. Solana released a statement on X stating that the network will power payments with USDC on Cash App. The Solana blockchain is popular among users to send stablecoins, mint NFTs, and play games, thanks to quick and inexpensive transactions.
The Growth Of Stablecoins
Stablecoins are tokens whose value is pegged to fiat currency, generally the US Dollar. They have seen a surge in popularity after President Donald Trump signed the GENIUS Act, establishing a clear regulatory framework for issuing and trading the assets. JPMorgan, Meta, Amazon, and even the US state of Michigan are working on issuing stablecoins to accelerate payments by leveraging blockchain technology.
New Bitcoin Features
Cash App has also announced several new Bitcoin features. The payments app plans to let users send payments using the Bitcoin Lightning Network, even if they do not hold Bitcoin. Users who do not hold any Bitcoin can select an option that lets businesses receive the payment in BTC instead of dollars.
“Once available, eligible customers will be able to turn their USD into Bitcoin payments with just a tap. After scanning a Lightning QR code, customers can toggle the ‘Cash’ currency option within Cash App, which will pull the funds from their USD Cash balance. While the customer is spending dollars, merchants will still receive Bitcoin.”
Cash App also unveiled a new feature to allow users to see which businesses in their area accept Bitcoin payments. Earlier this month, Block enabled Bitcoin payments for 4 million merchants through its Square point-of-sale products.
“We believe that Bitcoin is the future of the financial ecosystem, but to truly become everyday money, it needs to be more flexible and easier to use.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.