Dorsey's Dramatic Crypto Pivot: From Bitcoin Purist to Stablecoin Advocate
In a significant strategic shift that marks the end of an era for cryptocurrency purists, Jack Dorsey's Block Inc. is steering its popular Cash App toward supporting stablecoins. This move represents a sharp break from the company's long-standing commitment to Bitcoin purity and reflects broader industry trends toward regulated digital assets.
The Block co-founder and chairman, who previously insisted that Bitcoin alone could anchor everyday payments, is now moving the financial technology firm toward supporting dollar-backed tokens. This fundamental change in direction acknowledges that the cryptocurrency industry's momentum has shifted toward stable tokens that integrate with traditional financial infrastructure rather than attempting to upend it.
Cash App's Evolution: From Bitcoin-Only to Multi-Currency Platform
Cash App, which was among the first peer-to-peer banking platforms to widely offer Bitcoin balances, has accumulated 24 million customers using the platform to buy, store, and spend Bitcoin exclusively until now. Dorsey had long argued that if Bitcoin didn't become a tool for everyday payments, it risked irrelevance.
The company is now expanding into stablecoins by making these digital assets interoperable with users' cash balances. Users will soon be able to deposit stablecoins as US dollars in their cash balances and send stablecoins to another person's wallet. Block plans to launch with multiple stablecoins, including Circle Internet Group Inc.'s USDC token.
This strategic expansion comes as momentum around stablecoins continues to build following the passage of the first US regulatory framework for stablecoins in July. Since then, traditional financial institutions, retailers, and startups have become increasingly public about plans to support tokens that promise faster, cheaper, and more efficient payments, particularly for cross-border transactions.
Balancing Innovation: Bitcoin Features Continue Amid Stablecoin Push
Despite adding stablecoin support, Block remains committed to popularizing Bitcoin for everyday payments. The company recently announced a feature enabling Cash App customers to pay sellers over the Lightning Network, a blockchain designed to make Bitcoin transactions fast and cheap.
At checkout, customers will need to scan a Lightning QR code and pay directly from their cash balances while sellers would receive Bitcoin. Block is also launching a map to help consumers find merchants that accept Bitcoin payments, demonstrating its continued commitment to the original cryptocurrency.
Cash App is - and always will be - Bitcoin-first by design, according to Miles Suter, Bitcoin product lead at Block. This dual approach reflects the company's attempt to balance its foundational principles with evolving market realities.
Dorsey recently revealed at a Block event in New York that initially, everyone in the company hated Bitcoin, but they wanted to make a bet on an alternative to Visa and Mastercard. He emphasized the company's commitment to betting on an open network and protocol for the internet that allows moving money on a level playing field.
The broader industry context shows similar recalibration, with prominent figures like Cathie Wood scaling back their towering Bitcoin forecasts as institutional flows consolidate around assets engineered for price stability and regulatory acceptance. This trend underscores how even crypto's staunchest champions are acknowledging the industry's shifting momentum toward regulated digital dollars.
