Twitter CEO Jack Dorsey announced that a Bitcoin-based business for Square, named “TBD,” is about to build a decentralized Bitcoin exchange. It will offer functionality unique to decentralized exchanges, such as the use of fiat currencies.
Last month, Dorsey announced a new Bitcoin-focused division called TBD. The concept for it, which is held under the Twitter handle TBD54566975, was born as a new business for the digital payments service company, Square.
“Square is creating a new business (joining Seller, Cash App, & Tidal) focused on building an open developer platform with the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services. Our primary focus is #Bitcoin. Its name is TBD,” Dorsey tweeted in July.
Decentralized Exchanges (DEX) are based on other blockchains such as Ethereum's Uniswap and SushiSwap and Binance Smart Chain's PancakeSwap. TBD intends to make a fully permissionless and decentralized exchange built around Bitcoin but will provide users with a wide range of options for exchanging fiat currency for BTC.
DEX does not have a centralized intermediary controlling the exchange of tokens, and all exchanges take place directly between users. However, users cannot use fiat currency on DEX. But Square Bitcoin DEX intends to have significantly enhanced capabilities.
“We’ve determined [TBD’s] direction: help us build an open platform to create a decentralized exchange for Bitcoin,” wrote Dorsey.
Square executive Mike Brock detailed possible ways forward as the open-source DEX is created on Twitter. “We believe Bitcoin will be the native currency of the internet,” he wrote. “While there are many projects to help make the internet more decentralized, our focus is solely on a sound global monetary system for all. But including all requires a few pieces we think are missing.”
There’s been a lot of speculation about what TBD is and isn’t. Over the last few weeks our team has been determining what needs to be determined. We wanted to finally share our direction, and we have some questions.— Mike Brock (@brockm) August 27, 2021
Ultimately Square wants to create a service that will allow users to fund any kind of Bitcoin wallet—even those not listed on a centralized exchange or service—using fiat currency.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.