The digital payment company Square sees Bitcoin as a “transformational technology”and analysts predict that the company could one day introduce a cryptocurrency exchange.
Bitcoin a’ Transformational Technology’, says Jack Dorsey, CEO of Square.
The company made waves last year when it announced its intention to launch a Bitcoin trading pilot program via Cash App, the company’s peer-to-peer transaction platform. A month ago, Square released the feature for virtually all US users, offering them one of the most seamless Bitcoin buying experiences available.
Square Executives discussed the feature after the publication of their first quarter profit report on Tuesday and stated that while Bitcoin trading is “still not material to our results,” the company believes that Crypto currency is transformational and intends to develop more products and additional services that will use it.
“Bitcoin, for us, is not stopping at buying and selling,” Square CEO Jack Dorsey said on a conference call Tuesday, according to a MarketWatch report. “We do believe that this is a transformational technology for our industry, and we want to learn as quickly as possible.”
Dorsey has made similar comments in the past. When Square officially approved the Bitcoin trading platform for its cash app customers, Dorsey said the company sees Bitcoin as a “long-term path towards greater financial access for all.”
Square could launch Cryptocurrency Exchange
It would therefore come as no surprise if Square were to expand its cryptocurrency-related product line in the near to mid-term future.
The MarketWatch report suggests that the company wants to “wants to build out an app that accepts Bitcoin,” suggesting that Square – which continues to use most of its revenue from its payment processing services – can either introduce an app that helps merchants accept Bitcoin or extend this functionality to its current point-of-sale (PoS) products.
Meanwhile, Guggenheim analyst Jeff Cantwell on a Tuesday note for customers told Bloomberg journalist Lily Katz that Square could convert its cash app into a “coinbase-like exchange”.
If Square were to launch a fully functional crypto currency exchange, it would be immediately competitive with Coinbase, which is currently the dominant force in the US crypto-currency trading market. In December, there were seven million cash app users, which corresponds to about half of the users registered with Coinbase.
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