After investing $170 million in bitcoin in February 2021, the payment solutions specialist Square is taking another step into the crypto universe by announcing hardware dedicated to the storage of bitcoins, shortly before U.S. Senator Elizabeth Warren pointed out the growing risks posed by the cryptocurrency market to consumers and markets financial.
Cryptocurrency exchanges are used to stored Bitcoin wallets offline or online, sites where bitcoin can be traded for traditional currencies or other virtual coins. With a non-custodial wallet, you have sole control over your private keys, which are used to control your cryptocurrency and show that the funds belong to you. Having a custodial wallet would mean another party managing your private keys. Most deposit wallets are web-based exchange wallets.
Jack Dorsey, founder of Square in 2009 and a big fan of bitcoin, had already put forward the idea in June. “If we do it, we will do it in a completely open way, from the design of the software to that of the hardware”, he announced. Jack also confirmed that they plan to integrate the wallet with smartphones and that its code will be available in open source. Moreover, he said Square is searching for new features that would allow automatic investment in Bitcoin for its users.
The two most important players in the hardware wallet industry so far are Ledger and Trezor. By launching a cryptocurrency wallet, the company would come into competition with companies such as Ledger. Square already offers Cash App, an application that allows you to buy and sell bitcoins, among other things. In February 2021, Square had also acquired $ 170 million worth of bitcoin. According to Bitcoin Treasuries, the company now holds 8,027 bitcoins with a value, Friday, July 9, of approximately $264 million.
Cryptocurrencies hit a record cap of $2 trillion in April, but US market surveillance remains patchy. On Thursday, Former US Presidential candidate Ms. Warren raised concerns in a letter to Securities and Exchange Commission chairman Gary Gensler in an effort that could help lay the groundwork for legislation aimed at regulating the rapidly growing cryptocurrency market.
Writer: Imaaz Nadeem
Reporter: Imaaz Nadeem