Dorsey made this comment on Twitter of another company that he also serves as CEO. Subsequently, Square’s stock price rose 2.7% and rose 1% at the close of trading on Friday.
Bitcoin trading has become a fast-growing business on Square. Square allows consumers to use the Cash App to spend and digitally store Bitcoin. Square’s Bitcoin revenue increased from $516.5 million in 2019 to $4.75 billion last year.
Now, Dorsey intends to provide users with a new way of storing bitcoins. The bitcoins stored in this way are not controlled by Square or any other company. Bitcoin wallets can allow users to store cryptocurrency in a secure gadget and use it later when they want to use it.
Dorsey said: “Square is considering developing a hardware wallet for Bitcoin. If we do this, we will open-source everything from software to hardware design, and cooperate with the community. We hope to share some of our guiding principles To promote the development of this concept.”
He also explained the difference between Square’s product (if developed) and other existing alternatives.
He said: “The exchange you used to buy bitcoins may protect your account security out of good faith, but the actual situation may be that the custodial has become anxious. Decided to keep your bitcoins and protect you The security of Bitcoin is a complicated matter.”
What Dorsey was referring to was the current working methods of some exchanges. For example, PayPal allows users to buy Bitcoin, but it controls the “private key.” As Dorsey explained, this logic is more like “you borrowed money from an exchange.” In addition, PayPal does not allow users to transfer bitcoins to wallets outside the PayPal ecosystem.
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
Dorsey stated that Square may create an “assisted self-custody” to simplify the way people hold Bitcoin. He said that “assisted self-custody” allows consumers to easily spend a certain percentage of the available funds from the mobile phone while storing the remaining money safely in the wallet.
Dorsey said that this integration with Cash App is “obvious” but “only part of the solution.” Dorsey also said that the solution “does not have to be owned by Square” and said that “if we decide to develop” this product, he will provide more ideas.