"We believe that bitcoin's underlying technology — blockchain — will have a profound impact on how people around the world transact and store value," said Jack Dorsey, CEO of Square.
"The potential for disruption with bitcoin is tremendous." This is not the first time that Square has invested in cryptocurrencies. The company had previously purchased over 1,000 ethers worth $15 million last year. However, it was only an initial investment and the company did not hold any of these coins.
In addition to investing in bitcoin, Square also announced that it would be offering a new service called Square Money Cash. This is a digital version of money that can be used to buy goods and services anywhere that accepts Visa, Mastercard, or American Express cards. The service will allow users to send money through their registered bank account. It will then allow a person to use this money to buy bitcoin instantly. The new product is currently in invite-only testing and will launch in the fourth quarter of this year.
The move by Square to explore the cryptocurrency space and introduce new products in this market is expected to spur a flurry of similar moves. It may also eventually result in the cryptocurrency becoming more widely accepted in the real world.
"We're also announcing that we are partnering with Coinsbank to make it easier for our sellers to get paid in bitcoin," added Dorsey. "We want everyone in the ecosystem to be successful."
Although Square did not reveal the launch date for this new product, the company said that more details will be revealed in the coming months.
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