Users can now gift stock and bitcoin using their USD balance or a debit card via the Cash App
Users can now 'gift' stock and bitcoin using their USD balance or a debit card via the Cash App
Even though there are numerous methods for sending cryptocurrencies as gifts, Cash App's peer-to-peer payments app has recently added a new feature to make the process even more straightforward: gifting cryptocurrencies. Users in the United States will now be able to send bitcoin as well as traditional stocks as gifts to other Cash App users in the same country, thanks to the app, which is owned by Block (previously Square).
When compared to services such as Stockpile and Coinbase, which allow users to gift stocks and cryptocurrencies, Cash App claims that this is the first time such features have been included in a peer-to-peer payments application.
It builds on Cash App's previous functionality, which allowed users to send bitcoin to any $Cashtag on the app for no charge in the past. It is worth noting that users can now send bitcoin using either their Cash App USD balance or a debit card, rather than just their existing bitcoin balance, as opposed to the previous bitcoin-only option. In other words, users are not required to actually own bitcoin — or any other cryptocurrency, for that matter — in order to send it as a gift through the Cash App mobile application.
According to the company, in order to use this feature, users must send the fiat value of the stock or bitcoin from their Cash App balance or a linked debit card. Instead of being accessed through the investing tab, the new feature is accessed through the app's payment tab or through a new "gift box" button on the investing tab, which was previously unavailable.
Amount received: The amount received will be the asset's market value at the time it is accepted by the recipient. Instead of accepting the stock or bitcoin "gift," they can choose to receive the gift in US dollars if that is their preference.
Natural given that it is being released at the same time as the holiday gift-giving season, it may prove to be a convenient last-minute gift option. Users will be able to split bills and repay friends using stocks or bitcoin in the future, according to the company, rather than just cash.
Possibly even more importantly, existing users may be able to use the feature to persuade new investors to begin their investing journey with Cash App rather than with a competitor's app.
It is not the first peer-to-peer app to enter the investing or cryptocurrency markets; PayPal and Venmo, two of Cash App's closest competitors, both allow users to buy, hold, and sell cryptocurrencies. Cash App is a cryptocurrency exchange platform that allows users to buy, hold, and sell cryptocurrencies.
As an additional incentive to encourage users to invest through the app, Venmo introduced the ability for credit card users to purchase cryptocurrency using their cash back this year. The feature was marketed by the company as a way for newcomers to enter the cryptocurrency market without having to worry about the complicated process of purchasing cryptocurrency.
Also in a similar vein, the gifting feature of the Cash App may assist in attracting additional new investors who may not have sought out bitcoin investments on their own, but were encouraged to do so by a friend or family member.
