Digital payments company Square is considering building a hardware bitcoin wallet that would allow consumers to have a greater control over the cryptocurrency they own, CNBC reported.
Shares of the San Francisco-based company saw a rise of as much as 3.2 percent after the announcement and were recently trading at $214.37, a gain of more than 1 percent.
Square CEO Jack Dorsey, who is also the CEO of Twitter, made the announcement in a series of tweets.
“Square is considering making a hardware wallet for bitcoin,” Dorsey tweeted. “If we, do it, we would build it entirely in the open, from software to hardware design, and in collaboration with the community,” he added.
Bitcoin transactions have become a booming business for Square, which allows consumers to make purchases using the Cash App and store the currency digitally. Bitcoin revenue at the company climbed to $4.75 billion last year from $516.5 million in 2019.
Hardware wallets, which hold the digital currency but aren’t connected to the internet, are used by cryptocurrency investors for enhanced protection. Wallets let crypto users hold coins and include public and private key that acts as a blockchain address. Hackers have become adept at very sophisticated methods of stealing crypto that includes taking over someone’s phone to access the private keys that are necessary to move Bitcoin, Ether and other digital assets.
Explaining how Square’s product might differ from the rest, Dorsey said, “The exchange you used to buy your bitcoin probably attends to your security with good intent, but circumstances may reveal ‘custody’ actually means ‘IOU.’ Deciding to take custody, and security, of your bitcoin is complicated.”
Reuters reported that the company has increased its bets on bitcoin since it disclosed in February it had invested $170 million more in the cryptocurrency.
With more and more tech entrepreneurs turning to bitcoin, the future of transactions appears to be in favour of cryptocurrency. Apart from Dorsey, Elon Musk is another vocal supporter of Bitcoin and Dogecoin. The price of a single unit of these cryptocurrencies has seen massive upheaval as well as downturn after Musk’s statements and tweets.
Dorsey’s move will boost confidence when it comes to buying and investing in terms of cryptocurrency.