Square CEO Jack Dorsey tweeted that the company is considering developing a crypto hardware wallet that would give users greater control over how they store and spend their Bitcoin. The hardware would be built “entirely in the open, from software to hardware design, and in collaboration with the community,” which might mean that the wallet could be used outside Square’s ecosystem. Dorsey added that unlike many other crypto wallets and exchanges, the hardware solution would create “assisted self-custody” to mitigate users’ reliance on third parties and protect their cryptocurrency holdings.
Square’s ambitions come as the crypto space widens globally. Eighteen percent of US adults say they will likely use cryptocurrencies to make a purchase this year, per BitPay and PYMNTS, indicating the payment method is gaining steam. Globally, El Salvadorian President Nayib Bukele recently announced plans to adopt Bitcoin as a legal tender, which would make El Salvador the first country to do so. And in some parts of Switzerland, residents can use Bitcoin for public services like tax payments. Square’s hardware wallet plan could extend its reach in the growing crypto market and could lead to global collaborations—for example, the firm might lend its offering to countries like El Salvador to provide digital payment solutions to unbanked populations. And while Dorsey’s tweets only mentioned Bitcoin, Square could expand the wallet to include other digital currencies, opening up new use cases.
The proposed wallet could bring in new business opportunities and cement Square as a leader in the crypto space.