Square Inc, the popular digital payments company is all set to develop and launch a digital wallet for bitcoin. The announcement comes just moments before U.S. senator Elizabeth Warren raised concerns about the risks posed to financial and consumer markets by the cryptocurrency market.
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Bitcoin in 2021
Until now, 2021 has been a good year for Bitcoin as it touched an all-time high of around $65,000 in April. Although there are looming concerns about the regulatory framework, prevalence of fraud, and the volatility of the crypto market, technological developments around cryptocurrency have not stopped.
Today, Bitcoin wallets can be stored online or offline at cryptocurrency exchanges and other venues where bitcoin can be purchased or sold for conventional currencies or other cryptocurrencies.
Non-custodial wallets within the crypto market are becoming increasingly popular as customers have complete control of private keys. These private keys not only control cryptocurrencies but are also proof of the ownership of funds.
On the flip side, when it comes to custodial wallets, the other party has control over private keys. A majority of custodial wallets are web-based exchange wallets.
Jesse Dorogusker, Head of Hardware, Square, said that the company will build a hardware wallet and service to ensure bitcoin custody is mainstream.
We have decided to build a hardware wallet and service to make bitcoin custody more mainstream. We’ll continue to ask and answer questions in the open. This community’s response to our thread about this project has been awesome – encouraging, generous, collaborative, & inspiring. https://t.co/CHf9hAmKnn
— Jesse Dorogusker (@JesseDorogusker) July 8, 2021
Over the past few months, a lot of companies are catering to the increasing demand for security from online fraud and theft. Square is one such company that provides security and services that safeguard a consumer’s digital assets from online fraud.
Cryptocurrency – scenario in the U.S.
Although cryptocurrency’s capitalization touched the $2 trillion mark in April, the U.S. has not taken a firm stand on the market yet.
Warren, who is also a former U.S. presidential candidate, wrote to the Security and Exchange Commission Chair Gary Gensler raising concerns about the crypto market. This action could potentially assist authorities to lay the foundation for the legislation to regulate the rapidly expanding cryptocurrency market.
As of now, the Financial Crimes Enforcement Network (FinCEN) has not recognized cryptocurrencies to be legal tender. Many believe that the U.S. is actually behind the curve on crypto regulations.
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