Unchained Why LocalBitcoins Stopped Cash Trades and Has a New CEO - Ep.136
Sep 10, 2019
Sebastian Sonntag, the new CEO of LocalBitcoins, and Mika Impola, a software developer, delve into the recent changes at their peer-to-peer Bitcoin trading platform. They discuss the decision to end cash trades, citing minimal revenue and safety issues. The duo explains how user demographics are shifting, especially in regions like Venezuela, where Bitcoin serves as a financial lifeline. They also touch on their new compliance measures, the impact of regulations, and their goal to improve cryptocurrency accessibility globally.
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Cash Trades Misconception
- Mika Impola finds it confusing when Bitcoiners describe LocalBitcoins as facilitating cash trades.
- He clarifies that cash trades were common in the platform's early days but have significantly decreased over time.
Cash in Developing Countries
- Cash may not be the preferred transaction method in developing countries due to hyperinflation.
- Mobile money and bank transfers are often more practical.
LocalBitcoins' Evolution
- LocalBitcoins was initially created as a Craigslist-type platform for Bitcoin trading with no revenue model.
- The escrow service, introduced later, enabled the company to generate revenue by charging 1% of escrowed Bitcoins.