Key Takeaways:
- Jack Dorsey is looking to create a decentralized Bitcoin exchange through Square.
- Square’s grand vision includes enabling users to fund their Bitcoin wallets with fiat money even in a decentralized environment.
Square’s TBD Would Turn into a Decentralized Exchange
Jack Dorsey, founder of innovative tech companies Twitter and Square, has taken another step toward helping make the crypto realm more accessible. Mr. Dorsey has set out to create a fully permissionless and decentralized Bitcoin exchange. This is just one of the continued efforts to pave the way toward wider bitcoin adoption,
A long-time bitcoin evangelist, Jack Dorsey announced about a month ago the creation of a new business division that would be a part of his payments company Square. While Mr. Dorsey did not state explicitly what the division would do, he said then its aim would be to offer decentralized financial services with bitcoin on focus.
In a fresh tweet last week, Jack Dorsey revealed what the Bitcoin-centric division would be: a decentralized exchange for Bitcoin.
“We’ve determined TDB54566975’s direction: help us build an open platform to create a decentralized exchange for Bitcoin,” Jack Dorsey said in a Twitter post, describing Square’s vision.
Mr. Dorsey’s Twitter post was linked to a thread from Mike Brock, the person in charge of Square’s Bitcoin-focused business unit that goes by the name of TBD.
“We believe Bitcoin will be the native currency of the internet,” Mr. Brock said in one of his Twitter posts. “While there are many projects to help make the internet more decentralized, our focus is solely on a sound global monetary system for all. But including all requires a few pieces we think are missing,” he said. He was referring to issues common for centralized and decentralized exchanges.
Square’s Goal is to Allow Fiat Money to Fund a DEX-hosted Bitcoin Wallet
A centralized exchange is a place where a buyer and a seller strike a deal. The deal is then carried out by a centralized intermediary. A decentralized exchange, or DEX, has no intermediary and the deal, or the token swap, happens directly between two parties. However, a decentralized exchange could not be funded by fiat currency like pounds, dollars or euros.
Square’s goal is to build a Bitcoin-native DEX as part of the division’s broader mission. As a result, this comprehensive service would allow users to fund their Bitcoin wallets with fiat currencies, regardless of where they are hosted, even those hosted on a decentralized exchange.