Square and Twitter CEO Jack Dorsey is building a decentralized exchange for Bitcoin (BTC).
The tech mogul broke the news to his 5.6 million Twitter followers on Friday after first announcing last month that Square was developing new business, called TBD, focused on creating decentralized finance (DeFi) services for Bitcoin (BTC).
Mike Brock, general manager of TBD, says he believes Bitcoin will be the “native currency of the internet.” Brock argues, however, that certain goals must be achieved before BTC can serve as “a sound global monetary system for all.”
“Getting Bitcoin today typically involves exchanging fiat at a centralized and custodial service like CashApp or Coinbase. These on- and off-ramps to Bitcoin have a number of issues and aren’t distributed evenly around the world.
This is the problem we’re going to solve: make it easy to fund a non-custodial wallet anywhere in the world through a platform to build on- and off-ramps into Bitcoin. You can think about this as a decentralized exchange for fiat.”
Brock says that the team plans to develop an open-source, open-protocol, permissionless platform that TBD doesn’t control. He adds that they’ve been looking at RSK, a secure smart-contract platform.
“We’d love for this to be Bitcoin-native, top to bottom. And that’s leading us to consider things like RSKsmart. However, the gaps needed to build this may be too large, which would also have us consider other chains as a bridge.
Some of the gaps we currently see are around cost and scalability. Lightning is solving for this with payments. We need a [solution] for exchange infrastructure between digital assets, like stablecoins.”
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