Square CEO Jack Dorsey announced on Twitter that the company is building a hardware wallet for Bitcoin(BTC). The tech entrepreneur had alluded to the idea in a tweet last month that has since developed into a thread of regular updates on the project.
Square’s hardware lead Jesse Dorogusker was the first to post an update in the ongoing thread as he confirmed the fintech company’s plans to develop a hard wallet “to make bitcoin custody more mainstream.” Dorsey then retweeted this update and added "We're doing it."
Hardware wallets or “cold” wallets are considered to be a secure way of storing cryptocurrency assets. You can think of them as devices that are dedicated to storing the users’ private keys and holdings offline. While their benefits outshine hot wallets in terms of security, they’re widely perceived to be complicated by average users.
Presently, Trezor and Ledger are leading the Bitcoin hard wallet segment, which means Square already has stiff competition. But this isn’t the firm’s first foray into the crypto space. Square has a history of introducing technology in the payments sector; like the chip readers and terminals designed by the company for point-of-sale payments. Or the Cash App that allows users to buy and sell BTC.
Both Dorsey and his company Square have time and again reaffirmed their commitment to Bitcoin. Dorsey's Twitter bio only reads ‘#Bitcoin’ and during his appearance at the Bitcoin 2021 Conference in Miami, he went as far as to say that he would work on Bitcoin if he wasn’t working at Twitter and Square.
Square has nearly 8,000 Bitcoins on its balance sheet, which are estimated to be worth $264 million at current exchange rates.