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Jack Dorsey’s other company, the payments firm Square, introduced a feature to buy, sell, and hold bitcoin in its Square Cash app this week, which it initially rolled out to a “small number” of users.
Dorsey has long talked up the potential of cryptocurrencies, calling it “the next big unlock” in technology. Square’s users also shared this view and have been asking the firm for a bitcoin feature. “We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we’re excited to learn more here,” Square said in a statement.
Square Cash is the firm’s peer-to-peer payments service—a little like Venmo—and it’s free to use. Dorsey has been cagey about releasing numbers, but we know from 2015 IPO documents it processed $1 billion in transactions two years after its launch. Square Cash has successfully introduced fees to generate revenue in recent months, and a bitcoin brokerage service with a slick design and user experience could be worth paying for.
The bitcoin feature wasn’t just good for Square: it turned out to be even better for bitcoin. Market pundit Jim Cramer pronounced the move “big” for Square and something that would normalize cryptocurrencies for the mainstream. “I think this is something big and it’s going to drive Square up, and it’s going to make people feel better about bitcoin,” he said on a CNBC broadcast.
Just how good was Square’s move for bitcoin? The cryptocurrency gained about 12% on Wednesday following the Square news.—Joon Ian Wong
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