Why millions could soon use Bitcoin for payments through Jack Dorsey’s Square

Block, the financial technology company co-founded by X founder Jack Dorsey, could soon be accepting Bitcoin as a payment method across some of its offerings. In a recent interview appearance, the serial entrepreneur said Bitcoin would have “failed” if it only ends up as a store of value. He touched upon the importance of using Bitcoin for everyday payments and confirmed that Block is actively working to enable Bitcoin transactions on both its Square terminals and Bitkey wallet. While some critics argued the rollout has taken too long, Dorsey responded that the process isn’t as simple as “flipping a switch,” but reassured that plans were in motion. See below. Others remained skeptical, noting that Dorsey had been “saying it for years,” referring to past comments from Dorsey. What is Square, and what does this mean for Bitcoin? Block, formerly also known as Square, offers a wide mix of consumer and business tools designed to simplify finance. Its flagship product, Square, helps merchants accept payments, manage inventory, and run operations. As of 2024, Block had an estimated user base of 4 million sellers, processing around $228 billion annually. If Square begins accepting Bitcoin payments across its merchant network, it could mark one of the biggest steps toward the mainstream adoption of the cryptocurrency. With millions of sellers already using the platform, enabling BTC transactions could instantly introduce Bitcoin as a practical payment option in everyday commerce. Furthermore, it could also encourage some of its competitors in the payments space to explore similar integrations. Another key piece of Block’s Bitcoin push is Bitkey, a self-custody hardware wallet launched in December 2023. It’s designed to give users secure, independent control of their Bitcoin holdings without relying on exchanges or custodians. Dorsey confirmed that Bitkey, too, will support Bitcoin payments once integration is complete. On the consumer side, Block’s Cash App is already a major on-ramp for Bitcoin purchases. It allows users to buy, sell, and transfer Bitcoin, and in Q4 2023 alone, it generated $66 million in profit from BTC-related activity. Beyond payments, Block is heavily invested in Bitcoin infrastructure. The company holds 8,485 BTC worth over $700 million and is building a full Bitcoin mining system . It recently developed an advanced 3nm mining chip and is now focused on bringing a complete mining solution to market, combining its strengths in hardware, software, and supply chain management. To prioritise Bitcoin-related initiatives, Block has scaled back other ventures like the music streaming platform Tidal and its decentralised web project TBD. Square previously experimented with letting merchants accept Bitcoin back in 2014, but the feature was eventually discontinued. In a 2018 interview , Jack Dorsey explained that most of Square’s users at the time were small businesses selling “candles and bikes,” and customers simply weren’t ready to make those kinds of everyday purchases with Bitcoin. Financial troubles could hinder progress Block’s plans to roll out Bitcoin as a payment method could be delayed as the company recently reported weak Q4 earnings and laid off over 930 employees. The layoffs, which affected around 8% of its workforce, came just weeks after Block missed Wall Street expectations, reporting revenue of $6.03 billion against a projected $6.29 billion and earnings per share of 71 cents instead of the expected 87 cents. In Public comments, Dorsey has claimed that staff cuts were part of a broader restructuring aimed at aligning with strategic priorities and streamlining operations. The post Why millions could soon use Bitcoin for payments through Jack Dorsey’s Square appeared first on Invezz