Square, which is known for its disruptive innovations in the field of finance and technology, has announced that it will be launching a new platform to support decentralized financial projects using Bitcoin.
The decentralized finance movement, or DeFi, is gaining momentum. And Square may be the first major company to make a significant impact on its growth.
Twitter CEO, Jack Dorsey, has been publicly outspoken about Bitcoin and believes that it is the most compelling technological innovation of our time. Some of the crypto industry’s biggest challenges have been public perception and general knowledge about blockchain until this point.
A figurehead such as Dorsey could be enough to push crypto into mainstream status by solidifying its legitimacy as a viable financial tool for individuals looking for ways to upgrade their investment practices.
With the relentless push for crypto banking and start-ups, Dorsey will have his work cut out for him. But should he be the sole face of this movement? In order to take crypto banking up a notch – where it needs to be – what needs to happen? And who needs to lead it?
Jack Dorsey’s History with Bitcoin
It’s no secret that Dorsey is very, very fond of bitcoin and has consistently advocated cryptocurrency for a long time.
During this year’s B-Word conference, hosted by the Crypto Council for Innovation, Dorsey re-stated his love for bitcoin and provided a few reasons, such as it being a currency native to the internet, how the community surrounding cryptocurrency sees it as a genuine way to help people, and that it reminds him of the early days of the internet (in how it’s always evolving, deeply principled, and “weird as hell”).
In June, at a Bitcoin conference, Dorsey endorsed Bitcoin as a way to protect individuals against currency devaluation. He also said that he doesn’t see anything more important, in his life, to be working on and that he believes Bitcoin has the potential to change absolutely everything. Which, even for Jack, is a serious statement.
Back in 2018, Dorsey claimed Bitcoin would become the world’s single currency, and, in 2020, Square purchased an estimated $20 million worth of Bitcoin, further solidifying his enthusiasm in the project and his belief in blockchain and DeFi as a whole.
Where Does DeFi Fit In?
In recent years, DeFi (decentralized finance) has emerged as one of the most consequential developments of cryptocurrency’s reshaping landscape. This ascension, however, is more connected to Ethereum’s emergence rather than Bitcoin. These decentralized networks allow users greater control over their funds, which means they can also provide services or execute more complicated tasks besides simply making payments.
As the popularity of cryptocurrencies continues to grow, more people are looking for alternative ways to trade. The selling point with these decentralized platforms is that users have complete control over their money without having third-party intermediaries who can easily take away some or all of your funds at any time.