Apple drops top Bitcoin app from marketplace

  @Jose_Pagliery February 6, 2014: 1:19 PM ET
blockchain

Apple has yanked Blockchain, a digital wallet app for bitcoins, out of its mobile marketplace without explanation.

NEW YORK (CNNMoney)

Apple has pulled popular Bitcoin app Blockchain out of its mobile marketplace without explanation.

The Blockchain app, downloaded 120,000 times during its two years in Apple's iTunes App Store, was the most popular way for people and companies to transfer bitcoins from one another. Apple removed it from the store on Wednesday.

Blockchain immediately shot back with a statement, accusing Apple (AAPL, Fortune 500) of getting overly aggressive with future competitors. Apple is rumored to be developing its own mobile payment system.

"These actions by Apple once again demonstrate the anti-competitive and capricious nature of the App Store policies that are clearly focused on preserving Apple's monopoly on payments rather than based on any consideration of the needs and desires of their users," a spokesman for Blockchain said.

Related: What is Bitcoin?

Buy this $8M mansion with bitcoins

In its email alerting Blockchain of its decision, Apple referenced an "unresolved issue." But Apple didn't expand on that, and the company did not respond to a request for comment.

Bitcoin users are calling Apple a bully. Many are threatening to ditch iPhones and iPads for devices that run Google's Android. Blockchain is still available in the Google (GOOG, Fortune 500) Play Store.

"It is as if IBM (IBM, Fortune 500) would have banned email clients in the early 90's," said Michael Kondratov, president of the Aspire Auctions in Cleveland and Pittsburgh. Kondratov recently started allowing customers to bid on antiques and art using bitcoins.

"I feel Apple is no longer a 'rebel' company," he wrote in an email.

Related story: Zynga testing Bitcoin payments for games

Elizabeth Ploshay, a board member with the advocacy-focused Bitcoin Foundation, called it "truly upsetting" that Apple has distanced itself from the growing Bitcoin-using business community.

Blockchain's CEO, Nick Cary, noted that the company spent more than $100,000 developing the app. He said software developers are already working on making an HTML5 version that will work through all Internet browsers, including Apple's Safari. That would essentially render Apple's stand fruitless.

"They're on the wrong side of technology and history here," Cary said.

Apple hasn't yanked every Bitcoin-related app, though. Dozens still exist in its mobile marketplace as of Thursday morning.

The company's move is the latest event putting pressure on Bitcoin, which has grown in popularity because of its independence from government-controlled currencies. But Bitcoin maintains a stigma due to its frequent use in online drug markets like Silk Road.

Last week, U.S. law enforcement agents arrested the CEO of Bitcoin exchange BitInstant and charged him with laundering money for Silk Road customers. Additionally, lawmakers have called for increased regulation of Bitcoin in light of the currency's heightened privacy. Bitcoins can be traded without using names and are difficult to trace to individuals.

But bitcoins aren't just for drug dealers. Many legitimate businesses -- everything from Subway sandwich shops to barbers -- have adopted the digital currency. To top of page



Join the Conversation

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.