Square Sees Bitcoin as a 'Transformational Technology,' Could Launch Cryptocurrency Exchange
The company made waves last year when it announced that it was launching a Bitcoin trading pilot program through Money App, the firm's peer-to-peer transaction platform. A month ago, Square introduced the feature to nearly all of its US-based users, providing them with one of the most seamless Bitcoin purchasing experiences currently available.
Square executives discussed the feature following the launch of its first-quarter earnings report Tuesday, saying that while Bitcoin trading is «still not material to our results,» the firm views cryptocurrency as «transformational» and intends to build out more products and services that leverage it.
«Bitcoin, for us, isn't 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 issued similar statements in the past. When Square formally released Bitcoin trading to its Cash App customers, Dorsey stated that the company views Bitcoin as a «long-term path towards greater financial access for all.»
Consequently, it would not be surprising if Square enlarged its cryptocurrency-related product line in the near- to mid-term future.
The MarketWatch report indicated that business «wants to build out an app that accepts Bitcoin,» suggesting that Square — which continues to bank most of its revenue on its payment processing services — may either launch an app that helps retailers accept Bitcoin or roll this operation to its present point-of-sale (PoS) products.
Meanwhile, Guggenheim analyst Jeff Cantwell predicted in a Tuesday note to clients that Square may eventually transform its Cash App into a «Coinbase-like exchange,» according to a report from Bloomberg journalist Lily Katz.
If Square failed launch a full-scale cryptocurrency market, it would immediately be aggressive with Coinbase, which is currently the dominant force in the usa cryptocurrency brokerage market. As of December, the provider's Money App seven million users, which is roughly half the amount registered at Coinbase.