Square and Twitter CEO Jack Dorsey said Square is “considering” developing a bitcoin hardware wallet.
A hardware wallet, or “cold wallet,” is essentially an electronic device where you can store your cryptocurrencies offline. Online “hot wallets” or simply wallets (such as Metamask, Trust Wallet, and Rainbow) are generally considered less secure.
This Friday 4th, 2021, Dorsey and Square said his digital payments company is considering building a hardware wallet for Bitcoin. If the company goes forward with the project.
Dorsey shared guiding principles for the possible Bitcoin wallet in a thread on Twitter and also discussed it during the Bitcoin 2021 conference in Miami on Friday.
“We’re considering building a noncustodial hardware wallet. And the thing we want to do is make it completely in the open, from all of our software to all of our hardware design would be open-sourced,” Dorsey said at the conference on Friday. “We want to build it in collaboration with the community.”
Both Ledger and Trezor, two popular cold wallet makers, include small monitors in their products. Dorsey said Jesse Dorogusker, a former Square executive, would be helping him think about that kind of decision.
Square already lets people buy and sell digital coins via its Cash app.
Dorsey, who has been a vocal advocate of Bitcoin, said Square is likely to start work on a Bitcoin wallet “sometime very soon.”
Bitcoin wallets are wont to store cryptocurrency and have a personal key for security. Hardware wallets are considered among the foremost secure since they store Bitcoin in a physical device that may be plugged into a computer or phone.
“The exchange you used to buy your bitcoin probably attends to your security with good intent, but circumstances may reveal ‘custody’ actually means ‘IOU,'” Dorsey said in a tweet. “Deciding to take custody, and security, of your bitcoin, is complicated.”