On June 4, Jack Dorsey tweeted that Square is considering making a hardware wallet for bitcoin (BTC). The wallet would be open software and hardware and the community could participate in its design.
The CEO of the financial services and digital payments company and also founder of the social network Twitter shared some of the bases under which the device would be built.
Dorsey suggests following the principles of inclusion and decentralization of Bitcoin, offering a non-custodial solution. Seeks proposals to resolve how to reach 100 million people under this precept.
Control of assets
Aware of how important it is to have ownership of assets , the executive asks the community, what will be the problem for people to decide to take control of their assets.
Square could simplify the way where people hold bitcoin with “assisted self-custody,” says Dorsey, adding that it would make it easier for customers to spend a certain percentage of their available funds on their phone, while safely keeping the rest of the money in the wallet.
Taking into account the great accessibility of mobile devices, the CEO believes that the wallet It should be suitable for these devices and their defects and difficulties should be considered, always considering the risks that this may generate.
Dorsey adds that the hardware wallet would require a mix of custodial solutions, off chain and second layer . With the necessary technology to support the latter, natively, in a simple and scalable way.
The businessman mentioned that the integration of «Cash App» is «obvious», but «only a part of the solution ». It refers to a functionality to buy BTC with fiat money and vice versa, which will be a possibility of the application.
The CEO mentions that for the wallet to flow correctly, a special application is likely required, which, Dorsey adds, should not necessarily be from Square. The executive thinks of emancipated applications from Square or even the approval of companies such as Google and Apple.
Square’s stock surge on the news
After the publication of the tweet, the price of Square Inc.’s shares, which is listed on the New York Stock Exchange, gave a slight rebound of 2.78% to stabilize again in the following hours.
But not everyone seems to be so excited about the news. Riccardo Spagni, the former lead developer of Monero, tweeted Dorsey saying that open hardware does not work well for security features and recommended that he speak to Trezor so as not to repeat “the mistakes that the hardware wallet industry has made for a decade. ”
Square, a financial services and digital payments company founded by Jack Dorsey in 2009 based in San Francisco California, was one of the first companies to acquire bitcoin as a treasury reserve , and with its Cash App application it has generated millions of dollars as reported in CriptoNoticias in May of this year.