Jack Dorsey is best known for developing the social network Twitter. Today, he is using it as a platform to present the different dimensions of what could become a physical Bitcoin wallet developed by Square.
A BTC wallet like Bitcoin: open source and collaborative
On June 4, Jack Dorsey announced in a series of tweets that Square was considering developing a physical BTC wallet. This will be built in open source “from software to hardware design, in collaboration with the community.”
The wallet could, according to Dorsey, be integrated with Square’s Cash app. Cash is now one of Square’s main sources of revenue through its BTC offering. The app generates most of its revenue via bitcoin sales.
The businessman also emphasized the key role of Layer 2 in growth in his tweets:
“The multi-orders-of-magnitude growth we envision requires a mix of custodial, off-chain, and Layer 2 solutions that allow people to ‘get out of 0.’ What technology investments can enable native L2 support that is seamless and scalable across a hardware portfolio? “
A nuanced position on cryptocurrency custody
The Square co-founder also returned to the importance of self-dependency and the need to create a seamless mobile experience for cryptophiles. According to him, Square can simplify cryptocurrency custody via “assisted self-custody.” Dorsey rejects the extreme positions conveying the idea of all-or-nothing custody. He says the effectiveness of the proposed assistance depends on a number of factors: “minimal setup time, use of existing devices and end-to-end reliability.”
Square currently has 8,027 BTCs. While that number is a far cry from the 92,079 BTC held by MicroStrategy, which is preparing a $400 million purchase, Dorsey’s company is still one of the world’s largest holders of bitcoins.
Square signed up 1 million new users in January 2021. On May 14, its CFO, Amrita Ahuja, told the Financial Times that Square had “no plans at this time to make any further purchases” of bitcoins. Jack Dorsey’s announcement of a possible development of a physical BTC wallet by Square, therefore, reaffirms the latter’s commitment to Bitcoin. The crash did not break the company’s nerves and it continues to work towards the development of Bitcoin.