Dorsey said last month that the company was simply “considering building a Bitcoin wallet”. Now, Twitter founder and Square CEO Jack Dorsey has confirmed that his company is developing a hardware cryptocurrency wallet. So he commented on a Twitter post by the head of the hardware department Jesse Dorogusker, who wrote that Square is developing a crypto wallet to make the use of bitcoin more widespread. He added that Square wants to provide support for mobile services to a global audience.
Answering questions on Twitter, Dorsey emphasized that this is an open source wallet that you can integrate with smartphones. The head of the company also confirmed that ease of use was one of the requirements for the project.
Dorsey assured users that third parties would not be able to access the assets in the wallet.
He added that it will created without any stereotypes, sharing the basic principles of the company.
There are currently no details on how exactly Square’s Bitcoin wallet will be implemented. Bitcoin hardware wallets also known as cold wallets (because they not connected to the Internet). Thus, most of the existing solutions are a flash drive that must be connected to a computer or mobile device in order to be used. Hardware wallets are more reliable and secure than virtual wallets and better suited for storing large amounts of cryptocurrency. They maintain security by allowing people to store their private keys offline.
Ledger and Trezor are the two leading hardware wallet makers, so Square already has some serious competition. But the product isn’t necessarily the starting point for the company. While Square known for its payment processing software for small businesses, Square has also released its own smartly designed terminals and chip readers for point-of-sale payments. What’s more, its personal competitor Venmo, the Cash App, already lets you buy and sell Bitcoins.
Square and the financial future
Square is a financial technology company that develops solutions for accepting and processing electronic payments. Twitter CEO and founder Jack Dorsey created it in 2009. In 2015, the company held an IPO and went public.
In early May, the payment company published a financial report for the first quarter of 2021, according to which the income from investments in bitcoin amounted to $ 3.5 billion, while the gross profit from investments in cryptocurrency was only 2% of this amount – $ 75 million.
Square last invested in Bitcoin in February 2021. Then the company bought a cryptocurrency for $ 170 million at an average price of $ 51 thousand. Before that, it bought bitcoin in October 2020. Cryptocurrency now accounts for about 5% of Square’s total reserves.
The February Q4 2020 P&L report states that the company “believes that cryptocurrency is an economic empowerment tool that empowers people to participate in the global monetary system and secure their own financial future”.
Dorsey clearly hopes Square customers can help secure this future with Square’s hardware wallet.