Did Apple ban a Bitcoin wallet because they fear competition?

(Spoiler: no.)

Apple pulled Blockchain, a Bitcoin “wallet” app, from their store, and Blockchain’s CEO is sure this is because Apple sees them as a potential competitor. “I think that Apple is positioning itself to take on mobile payments in a way they haven’t described to the public and they’re being anti-competitive,” he told Wired.

As usual, though, this comes up because it fits into the default narrative about What Apple Is Like, not because there’s either direct or even circumstantial evidence to support it. While Apple may not welcome competition with open arms, there are dozens of applications on both the iOS and Mac app stores that directly compete with Apple’s products and services. Pandora, Netflix, Hulu, just about every app Amazon makes—by this logic, shouldn’t these all be gone?

For that matter, there are already mobile payment applications in the store that are far more direct competition for this still-hypothetical Apple payment system than Blockchain is. I can walk into (some) stores and pay directly with the Square or Paypal apps, but I can’t walk into a store and pay directly with Blockchain; it has no infrastructure specifically designed for point-of-sale, and even if the store took Bitcoin, I’d rather just swipe a credit card than diddle around with paying by SMS.

So why did Apple pull Blockchain? As usual, we don’t know, because Apple is about as communicative as a sack of flour. But given that they pulled Coinbase a couple months ago, the signs point to this having little to do with competition and a lot to do with Bitcoin. Apple has a rapidly expanding presence in China—whose antipathy toward Bitcoin is crystal clear—and they’re a strikingly conservative company when it comes to financial and legal matters; Bitcoin’s reputation as a haven for illegal activity may not sit well with them.

  1. chipotle posted this