Digital payments company Square is looking to launch a hardware wallet to make it easier for millions of people to store their cryptocurrencies.
Dorsey discusses the possibility of launching a hardware wallet
The crypto space has evolved over the past decade, with several companies coming into the sector. Square is already active in the cryptocurrency market. However, it plans to expand its position by launching a hardware wallet for Bitcoin.
Square CEO Jack Dorsey made this known via a series of tweets, where he talked about the possibility of launching a Bitcoin hardware wallet.
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
Dorsey said, “Bitcoin is for everyone. It’s important to us to build an inclusive product that brings a non-custodial solution to the global market. Much respect to everyone who has gotten us this far. What are the biggest blockers to get a non-custodial solution to the next 100M people?”
He went on to talk about the problem of holding cryptocurrencies on exchanges where the user is not in control of the wallet keys. Hence, leaving the funds at the mercy of the cryptocurrency exchange. “When the users decide to switch to custody solutions, the all or nothing mode of operation is also not suitable to every investor,” Dorsey added.
He suggested the use of assisted self-custody when it comes to storing cryptocurrencies. According to the Square CEO, assisted custody solutions require great product design, minimal setup time, reliance on existing devices, and end-to-end reliability. In addition, Dorsey prefers providing the solution as mobile apps since people spend more time on their phones than other devices.
Combining availability and security is crucial
Dorsey highlighted the need to make a hardware wallet very secure and easily available to the users. He said, “Blend availability and security. Make it easy for customers to keep the funds they want quick access to at their fingertips, spendable with phone-only permissions while keeping the remainder under tighter, less available but more secure controls.” He also talked about other issues such as the recovery mechanism, trust, layer 2, and displays.
He stated that although integration with Square will be necessary, it is not essential. They can develop the wallet, and Square might not own it. At the moment, Dorsey and his team are taking suggestions on how to design and develop the wallet.
Square is already active in the crypto space. Its Cash App allows users to buy BTC, and the company holds bitcoins on its balance sheet.