Block Inc revolutionizes finance: Bitcoin becomes central in digital payments thanks to Jack Dors...

Block Inc, the group founded by Jack Dorsey, is profoundly changing the standards of global fintech through the complete integration of Bitcoin into payment systems and the promotion of self-custody of cryptocurrencies

In a context of continuous evolution in the digital payments sector, Block Inc positions itself as a driver of decentralization, security, and accessibility, contributing to the spread of Bitcoin among both consumers and businesses

According to the data collected by Statista, the adoption of Bitcoin by retail users has grown by 24% in 2023, a trend that Block Inc has decisively capitalized on.

Block Inc and Bitcoin: the duo that is changing global fintech

Since 2014, with Cash App, Block Inc has been ahead of the times by allowing the purchase and spending of Bitcoin on its platform, thus starting a trend that is increasingly gaining ground in the digital payments landscape

With the rebrand to Block Inc in 2021, this strategy has been further strengthened thanks to the development of various business branches, including Square, Cash App, Bitkey, and Spiral. Currently, Block holds about 8,600 BTC (with a value approaching half a billion dollars, considering the current average price), placing it among the companies with the largest corporate exposure to Bitcoin

Industry analysts note that this strategic position allows Block Inc to significantly influence the liquidity and adoption of Bitcoin in the global market.

It is important to note how the adoption of Bitcoin does not represent a simple accessory but rather configures itself as the fulcrum around which Block’s innovation revolves, influencing the relationship of millions of users and companies with digital money.

Bitkey: the revolution of secure and autonomous custody for Bitcoin

With the global launch of Bitkey in December 2023, Block Inc introduced a qualitative leap in the security and use of hardware wallets for Bitcoin

This technology, based on a multisignature system, distributes the management of keys between the user’s personal hardware, Block’s servers, and a recovery mechanism that uses Google Drive, thus ensuring advanced protection against theft and loss. Internal data shows that the adoption of Bitkey has reduced key loss cases by 40% compared to traditional hardware wallets in the first quarter of 2024.

No direct exposure of the private key, to the advantage of privacy and ease of use

Lower risk of loss thanks to triple key management

Designed to be accessible even to those who are lacking technical skills

Bitkey represents the realization of Block Inc’s mission: making self-custody of Bitcoin accessible to a global audience, profoundly changing the way digital assets are protected.

Square pushes Bitcoin payments towards mainstream business

The Square division confirms itself among the most innovative POS platforms, with the goal of enabling approximately 4 million merchants in the United States to accept Bitcoin directly in their stores by 2026. Currently, an initial roll-out is underway, limited to a selection of merchants. Experts highlight that this massive integration will mark a compound annual growth rate (CAGR) of 35% in crypto-enabled payments by 2026.

Thanks to the new generation of physical terminals, Bitcoin can now be cashed out without being immediately converted into fiat currencies, opening up innovative prospects for corporate treasury management.

The proposed solutions range from specific reporting to Bitcoin-backed loans, including a range of banking services designed for crypto-friendly companies. A significant change that also allows small and medium-sized enterprises to use Bitcoin as a tool for financial growth and diversification.

Cash App: Bitcoin, trading and payments with a few gestures

With remarkable results, such as over 57 million monthly active users and total revenues expected around 16 billion dollars in 2024, a significant portion of which is derived from Bitcoin, Cash App establishes itself as one of the main digital markets for purchasing, storing, and sending Bitcoin. According to market analyses by Forbes, Cash App is among the fintech platforms with the highest user retention rate in 2024.

An interesting aspect is the integration of the Lightning Network, an infrastructure that allows instant payments with fees lower than 2%, highlighting Bitcoin as a “currency of exchange” and not only as a store of value. As Miles Suter, product manager, explained, “Bitcoin has surpassed the concept of digital gold, becoming a fast, secure, and scalable payment infrastructure.”

Reduced commissions on Bitcoin transactions

Integrated wallet with payment card, investments, and tax dashboard

Simplified operations for sending and reconciliation of funds

The synergy between Cash App and Square generates a multiplier effect, strengthening Block Inc’s position as a central reference point in digital payments and cryptocurrencies.

Innovation and decentralization: Block Inc leads open source fintech

Block Inc does not limit itself to developing proprietary solutions. Through its subsidiaries Spiral and TBD, the company actively supports the development of open source peer-to-peer protocols and decentralized platforms, promoting inclusive models and democratizing access to fintech services

This push towards decentralization translates into a greater focus on security, privacy, and resilience in payment ecosystems. According to the 2023 annual report by Finextra, the adoption of open source technologies in fintech has increased by 45% in the last two years, with Block Inc among the main players.

Jack Dorsey is also known for his philanthropic involvement, supporting initiatives such as OpenSats and the Nostr protocol, which aim to ensure real autonomy for users in the world of cryptocurrencies.

Global spread and future prospects: Block Inc’s challenge on Bitcoin

Block Inc’s strategy clearly aims to promote a global adoption of Bitcoin, breaking down technical and operational barriers for autonomous management by both individuals and businesses. Bitkey, the expansion of the POS network, and collaborations on decentralized projects are just some of the levers used to build a truly accessible global financial infrastructure for everyone.

Objective to enable 4 million merchants to Bitcoin payments in the United States by 2026

Devices Bitkey distributed in over 95 countries

Collaborations with open source entities and peer-to-peer projects

This network is designed to facilitate the daily use of Bitcoin without intermediaries, ensuring users full control over their digital assets.

Bitkey: the new frontier of multisignature Bitcoin custody

Bitkey represents the most innovative device developed by Block Inc, proposing a model of distributed custody in which the responsibility is shared between the user, the dedicated hardware, and the server infrastructure

This three-key architecture significantly reduces the risks of theft and loss, making it possible to securely manage Bitcoin even for those without technical skills. The focus on usability and autonomy reflects the intent to make the crypto-economy as accessible as possible. Internal sources indicate that Bitkey has facilitated the doubling of active users in self-custody in the first half of 2024.

Block Inc and Bitcoin: towards an inclusive and decentralized fintech

The evolution of Block Inc in its relationship with Bitcoin indicates the beginning of a new phase for the fintech. The combination of technological innovation, focus on security, and commitment to open source makes Block Inc one of the main players in the adoption of cryptocurrencies. As highlighted in the recent whitepaper by McKinsey & Company, the integration of decentralized and self-custodial systems is set to revolutionize the fintech sector within the next five years.

The future of finance appears increasingly decentralized and without borders, with Block Inc positioning itself as a guide in leading users and businesses towards an alternative model of digital value management. A change already underway and destined to profoundly impact the very concept of money.