Square CEO Jack Dorsey announced TBD's intention to create its decentralized cryptocurrency exchange. He shared this news on his official Twitter account.
TBD is an open-source developer platform introduced by Dorsey back in mid-July. Its main goal is to simplify the creation of decentralized financial services that are not related to storage. Bitcoin is the top priority for TBD.
In a tweet yesterday, Dorsey said the team had identified a way forward and asked the community to help them shape an open platform to further build a decentralized bitcoin exchange.
TBD chief executive Mike Brock said bitcoin will take over as the internet's native currency. Many are now paying much more attention to increasing the overall decentralization of the Internet, he said, while Square and its division will focus solely on a global and secure monetary system for all.
Brock stated that receiving bitcoins today involves exchanging fiat in one of the centralized storage services. He cited CashApp and Coinbase as examples. But these "entry and exit" services to cryptocurrencies have several problems and contribute to the uneven distribution of funds around the world. Brock and his team intend to solve such problems by simplifying the replenishment of a non-custodial wallet anywhere in the world. He called the idea “decentralized exchange for fiat”.
Another advantage will be the lack of a strong control and management model that will allow for centralized manipulation. They want to exchange bitcoins as natively as possible according to the “top to bottom” principle. This encourages the team to look closely at smart contract solutions like RSK. Brock also stressed that they can view other chains as bridges. In addition, they have to solve the cost problem associated with scalability. The head of TBD himself believes that Lightning is suitable for this, but notes that first of all the project needs to find a solution suitable for the exchange infrastructure between crypto assets, such as stablecoins.
Dorsey has long been a bitcoin maximalist and tries to avoid mentioning other cryptocurrencies. Even an industry giant like Ethereum. For this reason, almost no one who commented on its publication on Twitter asked why only the main cryptocurrency on the market was mentioned as a medium of exchange. The addition to the DEX from Square is likely to be the hardware crypto wallet they announced earlier.
While the project is at an early stage of development, the team did not name any terms or guidelines.