Jack Dorsey believes in a future where cryptocurrency is the de facto medium of exchange on the internet. He stated this belief while on stage at the 2018 Consensus conference in New York on May 16, 2018. The Square CEO has always been bullish on Bitcoin, cryptocurrency and blockchain technology. Dorsey has significant Bitcoin holdings and his company; Square is one of the leading players in the Bitcoin fintech arena. Speaking at the Consensus summit, Dorsey also reiterated the need for simplifying the entry barrier for crypto payment systems.
A Hands-on Approach
According to Dorsey, the internet is ripe for a native currency. As a driver of the current age of modernization, the internet has created a vibrant ecosystem for business and commerce. The world has become more connected, and globalization is opening up new vistas and avenue for opportunities. Jack Dorsey who is also the CEO of the social media giant, Twitter believes a hands-on approach to establishing a native internet currency would be more beneficial to all parties involved.
Before the advent of Bitcoin in 2009, there had been numerous attempts to create a digital virtual currency. These plans failed at various levels until Nakamoto created Bitcoin. Cryptocurrencies are still mainly seen as speculative investment assets and not as actual spendable currencies, but Dorsey expects this to change. Thus, the Square CEO is advocating for concerted efforts to make cryptos a viable currency in the internet ecosystem. Dorsey also hopes that Bitcoin will be the native cryptocurrency of the web domain.
Creating a Decentralized Global Payment Ecosystem
A crypto-payments-powered internet has profound implications for fintech firms like Square. Such a paradigm will reduce the current entry barriers that companies face when entering new markets. The firm will no longer need to jump through many hoops when trying to offer its services in different countries. In the current operating condition, Square has to strike partnerships with local banks and conform to the statutory financial regulatory framework of each region. However, an internet commerce ecosystem denominated in cryptocurrency will remove all of these restrictions.
Already, Square is making significant strides in the market through its Cash app which was launched at the start of 2018. Since the launch of the Bitcoin trading feature on the app, the company has sold $34.1 million. However, the Square only made a $200,000 profit on the revenue since it cost $33.9 million to acquire the Bitcoins in the first place. Despite this relatively low profit, the Cash app is reportedly outstripping PayPal’s Venmo regarding growth.
For Bitcoin or any cryptocurrency to be used as a general payment method, some semblance of stability is required. Presently, cryptos are highly volatile, leading to people like Stanley Druckenmiller to express skepticism about the ability of cryptos to be used as currencies.