Square weighs up hardware Bitcoin wallet

Payments company Square is considering the possibility of creating a hardware wallet for Bitcoin, said Jack Dorsey.

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

He said the company would be guided by principles of maximum openness — from using open-source software to designing the device’s appearance in collaboration with the community.

Dorsey also noted that the potential product could be paired with the Cash App. In Q1 2021, sales of Bitcoin through it amounted to $3.51 billion.

“But this [Cash App integration] is only part of the solution. The smooth operation will most likely depend on a specially built app, but it does not have to belong to Square,” wrote Dorsey.

12/Cash App integration is obvious for us but only part of the solution. A smooth experience likely depends on a custom-built app but it doesn’t need to be owned by Square. We can imagine apps that work without Square and maybe also without permission from Apple and Google. You?

— jack (@jack) June 4, 2021

The Twitter founder raised a number of issues for discussion, including security, possible obstacles, the need for additional tools, potential threats and risks. He added that, together with the team, he would listen to proposals and “continue the conversation”.

With that, @jessedorogusker, I, and team will listen and continue the conversation. And we’ll set up a dedicated Twitter and github account if we decide to build. We’ll update this thread with that information when we’re ready. Thanks!

— jack (@jack) June 4, 2021

Earlier, Blockstream entered the hardware-wallet market with the Jade open-source device. It allows storing Bitcoin and other assets on the Liquid Network sidechain.

In October 2020, Square invested $50 million in Bitcoin. In February 2021, the payments company additionally bought about 3,318 BTC for $170 million.

In May, Square’s chief financial officer, Amrita Ahuja, said that the company does not plan to change its investment strategy, with Bitcoin remaining part of it.

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