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Sudden Change in Localbitcoins When It Incorporated Bitcoin Cash as Payment Mechanism

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Jun 5, 2021

For the purposes of acquiring further Bitcoins, Localbitcoins has incorporated Bitcoin Cash as well as other notable cryptocurrencies as a mechanism for settling payments. This makes it abundantly clear that Localbitcoins has retracted from its earlier stance where it was using only Bitcoin payments.

One of the leading peer-to-peer crypto trading platforms of the world namely Localbitcoins has brought about a few changes in the platform. The firm was exclusively Bitcoin-based wherein the customers were allowed to trade Bitcoins only. Even for the acquisition of Bitcoins, the company did not accept payments in the form of crypto but relied on fiat only.

But now the company has completely overhauled its payment mechanism which was confirmed in the blog post announcement made by Localbitcoins. The company has now approved several cryptocurrencies for the acquisition of Bitcoins by the exchange’s customers. For the purposes of payment through cryptocurrencies, the firm has incorporated particularly Bitcoin Cash (BCH). Other cryptocurrencies and stablecoins added in the payment mechanism include Tether, USD Coin, Cardano, Polkadot, Dogecoin, and Chainlink.

For a very long time, Localbitcoins was maintaining a policy where no crypto payment accepted for the purchase of Bitcoins. However, the present move is a genuine detraction from the earlier policy of Localbitcoins, which was followed for several years.

Apart from that, the crypto trading platform also incorporated various other payment mechanisms and divided them into categories. For instance, payment mechanisms have been introduced exclusively for international use. Similarly, certain countries have been pointed out where payment mechanisms would be different from normal and international payment mechanisms.

The firm is also regarded as the first peer-to-peer crypto trading platform in the world. The firm also strictly follows policies such as AML and KYC, which have been implemented from day one when it started its operations.

Localbitcoins was though established in 2012, however, there hasn’t been any improvement in the firm’s day-to-day operations. For instance, the trading platform of Localbitcoins is almost the same as it was 9 years ago. In addition, even though the majority of crypto exchanges are not providing mobile apps, but there is no mobile app launched by Localbitcoins. It continues to rely on the desktop version of trading which lacks most of the features that were introduced in the industry after 2012.

Since no commendable change was brought into the platform, therefore, the firm saw the departure of a high number of customers. It is obvious that the present move has been taken to reclaim the reputation Localbitcoins had enjoyed from 2012 till 2015. However, when the firm failed to adopt innovation and provide for improved products, it started to lose business. In the meanwhile, the exchanges, who were established years after Localbitcoins, took a lead from Localbitcoins.

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