Square CEO Jack Dorsey has said that the business is thinking about developing a hardware bitcoin wallet. Square’s stock increased by around 1% on Friday.
While Square provides a digital wallet, Dorsey is proposing a solution that would give Bitcoin holders greater power.
Square CEO Jack Dorsey said on Friday that the business is considering developing a hardware bitcoin wallet that would offer users more control over their money.
Square is considering making a hardware wallet for #bitcoin. If we do it, we would build it entirely in the open, from software to hardware design, and in collaboration with the community. We want to kick off this thinking the right way: by sharing some of our guiding principles.
— jack (@jack) June 4, 2021
Square’s stock gained 2.7 percent in response to Dorsey’s remarks, which were posted on Twitter, where he also serves as CEO. On Friday, the stock ended the day with a 1% gain.
A More Empowered Way to Hold Bitcoin
Square’s Cash App, which enables customers to make purchases and save cash digitally, has seen a surge in Bitcoin transactions. Last year, the company’s bitcoin revenue increased to $4.75 billion, up from $516.5 million in 2019.
Dorsey proposes a new mechanism for people to keep bitcoin that is independent of Square or any other firm. A bitcoin wallet might enable consumers to keep their Bitcoin in a safe device and then decide when and how to use it.
Dorsey is referring to the existing state of several exchanges. PayPal, for example, allows you to purchase bitcoin, but it retains ownership of the “private key” and functions more like an IOU, as Dorsey explains. PayPal also prohibits consumers from transferring bitcoin to wallets outside of the PayPal network.
2/“No keys, no cheese.” The exchange you used to buy your bitcoin probably attends to your security with good intent, but circumstances may reveal “custody” actually means “IOU.” Deciding to take custody, and security, of your bitcoin is complicated. What’s the #1 problem here?
— jack (@jack) June 4, 2021
Square, according to Dorsey, may be able to simplify how individuals retain bitcoin by introducing “assisted self-custody,” which would allow users to spend a portion of their available cash from their phone while keeping the remainder secure in their wallet. Integration with the Cash App, according to Dorsey, is “evident,” but “just half of the answer.”
Dorsey said that the solution “doesn’t have to be Square-owned” and that he’ll share further details “if we decide to construct” the product.
Square’s Integration of Bitcoin
Cash App competes with peer-to-peer payment applications like Venmo, Zelle, and others. The fact that equities and cryptocurrency trading are both accessible on the platform distinguishes Cash App.
Since 2013, Cash App has offered a P2P (peer-to-peer) payment service, however Bitcoin buying and selling was not available until 2018.
Customers may use the Cash App for free most of the time. This firm operates in the following way: it charges merchants a portion of each transaction. Instead of using a debit card, you may pay using a credit card.