Jack Dorsey is optimistic that cryptocurrency could become a legal medium of exchange for the Internet, both coming out of digital optimism. He said the difficulty of using Bitcoin will wane down as more people start using it.
Jack Dorsey, the CEO of Twitter and Square Inc., says cryptocurrencies will have more role in the future of global payments saying that the Internet deserves a native currency. He says that cryptocurrencies are the future of a legitimate means of global payment but he is unsure whether that will be Bitcoin but hoped it will be.
He is optimistic that as more and more people port in or start using cryptocurrencies. However the difficulty of using Bitcoin as a medium of exchange due to it being “slow and costly” is going to “go away”.
The statement came from Dorsey during the Consensus conference on Wednesday where he was one of the speakers. The New York Consensus Conference 2018 is still ongoing and one of the highly anticipated events in the crypto community. Around 8,000 attendees were expected this year.
Dorsey, who has been optimistic of Bitcoin, said the cryptocurrency community, for now, has work to do. However namely to “educate regulators and educate the SEC why this technology is important”.
However, he said the position on cryptocurrencies is a contentious one at his company, with some directors’ resistant to the cryptocurrency idea.
Square, which allowed merchants to accept BTC as early as 2014 and now lets people trade BTC through the Cash App, reported low profits or $200,000 last month. BTC constituted 5 percent of the overall company revenue.
Elsewhere, PayPal CFO John Rainey said that the company will proceed with caution about supporting cryptocurrencies. As merchants are reporting low interest for cryptocurrencies due to their volatile nature.
The company may support cryptocurrencies in future though, if they became more stable.
“You could have something that appeals to consumers, but if merchants don’t accept it, it’s of little value. Right now, we don’t see a lot of interest from our merchants. But if it’s something that stabilizes in the future and is a better currency, then we’ll certainly support that”.
For now, he is less optimistic about merchants accepting cryptocurrencies because of the high volatile nature of the assets.
He said during an interview on Mad Money hosted by CNBC that merchants prefer a “more stable currency” than crypto. Because of the volatile nature of cryptocurrencies threatened the viability of their businesses.
Rainey said in the exclusive interview,
“If you’re a merchant and you have, let’s say, a 10 percent margin on a product that you sell and you accept bitcoin. For example, and the very next day it moves 15 percent, you’re now underwater on that transaction”.