A survey from Nomura Instinet has shown that the majority of merchants using Square Inc.’s payment network would be willing to accept Bitcoin – and that is instead of, not as well as US dollars.
A Possible Sea Change?
The survey was of those merchants trading in more than $100,000 per year, following on from Square’s announcement that they would be adding Bitcoin to its cash app. CEO Jack Dorsey has long been an outspoken Bitcoin bull, telling the Times this year:
The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin… It’s slow and it’s costly, but as more and more people have it, those things go away. There are newer technologies that build off of blockchain and make it more approachable.
Now, the Nomura report, spearheaded by Dan Dolev, seems to indicate extremely positive news for shareholders ahead of the May 2nd Q1 earnings report. Currently, the net benefit per merchant could average out at $125 per user, and Dolev is optimistic that this trend will continue into the second quarter of the year and beyond.
We expect fundamentals to continue to improve helped by SQ’s accelerating share gains and mix shift to large sellers. We continue to expect net yield to expand (from 1.05% in Q1 to 1.09%) helped by growing penetration of higher priced products more than offsetting mix shift to larger sellers.
What do you think about this positive prediction for Square? Do you think that they would consider abandoning the USD in future? Let us know your thoughts in the comments section.