Jack Dorsey, chief executive of Twitter and payment company Square , has spoken of his strong belief in the future potential of bitcoin.
Mr. Dorsey, 41, is a billionaire at least four times over, and is considered something of a sage in the technology space. He was instrumental in establishing the micro-blogging platform Twitter. The San Francisco-based social networking staple has proven itself over its decade of existence to be a galvanizing space, especially for the cryptosphere, with over 300 million users.
In an interview with The Times published Wednesday, Dorsey, himself a noted bitcoin investor, said he believes the cryptocurrency will take over the U.S. dollar’s dominant place in world finance and become the primary global currency for payments.
“The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin.”
He’s also CEO of Square, Inc., San Francisco-based as well, a point of sale payments platform allowing for person-to-person commerce serving the US, Australia, Canada, Japan, and the United Kingdom. The popular smartphone client announced last month it would launch an in-app bitcoin buy and sell option. “We support bitcoin because we see it as a long-term path towards greater financial access for all — This is a small step,” Mr. Dorsey detailed. The move has proved compelling to merchants, as even amidst price volatility 60% said they’d accept Square. Square is also reportedly launching an instant deposit service. After about 20 minutes, merchants can access funds in their accounts, making cashflow much easier for smaller businesses.
This has led to speculation that Square may begin handling Bitcoin payments in its merchant payment processing software or perhaps even launch a full-fledged cryptocurrency exchange.
Dorsey — who also leads social media giant Twitter — conceded that Bitcoin in its present state of development is not an “effective currency,” citing slow confirmation times and high transaction fees (although fees are currently at a relative low point). Nevertheless, he expressed optimism about technologies that will make Bitcoin payments more user-friendly and efficient in the near future.
“It’s slow and it’s costly, but as more and more people have it, those things go away. There are newer technologies that build off of blockchain and make it more approachable,” he said, it “does not have the capabilities right now to become an effective currency”.
One of those technologies, presumably, is the Lightning Network (LN), a second-layer scaling solution that allows users to open off-blockchain payment channels and execute near-instant transactions with virtually no fees.
Dorsey, notably, recently invested in Lightning Labs one of the leading development teams focused on programming LN software. Earlier this month, Lightning Labs released lnd 0.4-beta, which is the first LN implementation to receive a beta release.