Not every business venture in the bitcoin world is a successful one. Although Cashila has seen its fair share of success in the online bitcoin payment industry, the company is pivoting their business model. All retail services will be shut down and replaced by a stronger focus on the B2B segment. A big change for one of Europe’s first registered bitcoin companies, that much is certain.
Cashila Heads In A New Direction
It is somewhat surprising to learn Cashila wants to focus on B2B Bitcoin activities rather than remain active in the retail sector. It is a bit unclear why this decision was made so suddenly, although it appears there may have been some issues caused by TransferWise. As most cryptocurrency enthusiasts know all too well, TransferWise is not keen on bitcoin, as it is a direct competitor to their services. There have been rumors about TransferWise was blocking Cashila’s bank accounts last year, which only adds more frustration to an already complicated business model.
Ever since the company launched its service in 2015, Cashila quickly made a name for itself as a solution to convert bitcoin to euros and vice versa. Users could execute payments to bank accounts in real-time, which is made possible thanks to Cashila’s authorization to facilitate third-party payments. Having a valuable service that allows anyone to pay their bills or purchases with bitcoin has been a great addition to the cryptocurrency ecosystem. Unfortunately, with the bank account issues mounting, providing that service has become nearly impossible.
For the time being, Cashila will not accept new users or deposits. Anyone who has funds deposited into their account can withdraw the money through a SEPA transfer. Additionally, it remains possible to buy and withdraw bitcoin to a different wallet if the user prefers to do so. Withdrawals will remain accessible until May 31st. Anyone still holding funds in their wallet after that date has until March 31, 2018 to contact customer support and get the money out.
The path forward will be quite an intriguing one for Cashila, that much is certain. Focusing on B2B activities through bitcoin is an interesting decision that will pose its own set of challenges. However, considering the company is officially registered as a financial institution in Europe, Cashila will have no trouble finding a place in the B2B market moving forward. It will be interesting to see what the future holds for this company.
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