Paying for your lunch with bitcoin? In a sign that this new reality is closer than ever, Cash App has integrated with Lightning Network to let people in the U.S. transfer bitcoin for free.
The app, which Twitter (TWTR) founder Jack Dorsey launched as a Square (now known as Block) offshoot in 2013, is a popular way to transfer money through a phone — as of last September, it had 70 million annual users.
What's Lightning?
The new feature, which Cash App had already been testing with some customers in the preceding months, uses the decentralized Lightning technology to ensure bitcoin transactions take place instantly and are confirmed as legitimate through the blockchain.
"Buy tacos, tip your favorite Twitter comedian, or send a friend money abroad — anywhere that accepts lightning," Cash App wrote in a Twitter post announcing the launch.
In theory, the addition of Lightning will make it possible for Cash App users to do everything from send bitcoin to family members across the world to use it to buy something as small as snack at the mall.
In actuality, very few mainstream merchants currently accept bitcoin for small transactions although that is starting to change, with apps like Lightning Pizza have recently partnered with Domino's to facilitate bitcoin pizza orders.
Is Dorsey Behind This?
Dorsey, who stepped down as CEO of Twitter (TWTR) in November 2021, has been focusing his attention cryptocurrency instead of social media for years prior to the announcement. A heavy promoter of bitcoin in particular, he frequently speaks about its potential and pushes businesses to start embracing it more.
The announcement makes no mention on whether Cash App users will be able to receive bitcoin payments — this feature would need to be worked through in order for bitcoin to become as common as regular currency.
At $44,167.70, Bitcoin is down significantly from a high of around $69,000 in November. But while the $70,000 milestone has not yet been breached, the cryptocurrency is on a general upward trajectory as more people seek to adopt it and its use becomes more current.
"“#Bitcoin will unite a deeply divided country. (and eventually: world)," Dorsey tweeted in August.
