Jack Dorsey’s fintech firm, Block, has unveiled a new feature allowing Square merchants to allocate a portion of their daily sales to Bitcoin. Here’s a breakdown of the key points:
Qualified U.S. merchants can allocate between 1% and 10% of their daily sales to Bitcoin. At the end of each day, fiat funds collected are converted to Bitcoin and deposited into the merchant’s Cash App account. Merchants incur a 1% fee on each conversion.
Square believes that Bitcoin is a tool for economic empowerment, allowing small businesses and individual proprietors to participate in the global financial economy. The move aims to address the interest expressed by Square sellers in Bitcoin, seeing it as a means of long-term savings and diversification of holdings.
Block’s foray into Bitcoin mining comes shortly after the announcement of a proprietary three-nanometer chip designed for mining Bitcoin. This initiative aligns with Dorsey’s statement on building a mining rig, indicating a strategic push into the Bitcoin ecosystem.
The decision to expand Bitcoin services follows Block’s exceptional profits from Bitcoin in the fourth quarter of 2023. Cash App alone generated $66 million in Bitcoin gross profits, marking a 90% increase over 2022. Dorsey has also expressed a commitment for Cash App to become a leading provider of banking services for households earning up to $150,000 per year.
Block’s integration of Bitcoin allocation for Square merchants and its entry into Bitcoin mining signal a concerted effort to leverage Bitcoin’s potential in the financial landscape. By empowering small businesses and expanding Bitcoin services, Block aims to facilitate broader participation in the global monetary system and strengthen its position in the fintech industry.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up