Bitcoin has the potential to disrupt existing traditional payment networks, especially with the increasing adoption of the Lightning Network, Block Inc (SQ) said during its virtual investor day on Wednesday.
"Bitcoin will have a profound impact on financial services, particularly as a tool for economic empowerment and as a global currency for the Internet," Block CFO Amrita Ahuja said during the presentation.
Block, formerly known as Square, is developing integrated hardware and software to enable self-storage with its wallet, as well as a decentralized mining system. Its CEO, Jack Dorsey, is a well-known proponent of bitcoin.
"These initiatives are in the early stages of their development," Ahuja said. "We intend to develop them openly." She added that Block expects self-storage to be the "future of decentralized finance" as the process becomes easier for individuals.
In terms of mining, Ahuja said that it is currently "not conducive for consumers or small businesses to participate," and that Block is therefore looking to a broader range of players to access this market. Ahuja said Block's mining initiative also aims to make the bitcoin ecosystem more resilient and secure.
Ahuja said Block's TBD initiative aims to improve and transform the way consumers and financial institutions interact - from compensation verification to underwriting and global money transfer.
In the first quarter, Cash App, Block's peer-to-peer payment service that allows users to buy and sell bitcoin directly, generated $1.73 billion in bitcoin transactions and $43 million in gross profit. Block also holds a significant amount of bitcoin on its balance sheet.