Square and Twitter CEO Jack Dorsey announced the project in August with the goal of making Bitcoin the Internet’s native currency. . “In order to achieve this, the nature of financial institutions needs to evolve.
We can either embrace this change — by investing in this future as a public good by rethinking our business models and ways to create value — or we can let this future happen to us,” according to a blog post by the company.
Bridging the Gap between Fiat currency & Bitcoin
tbDEX is projected to bridge the existing gap between fiat currency and Bitcoin and aims to provide a way for people to convert their fiat into bitcoin without having to go through multiple platforms
The statement reads : “We propose a solution that does not rely on a federation to control permission or access to the network; nor does it dictate the level of trust required between counterparties,”. “There is no governance token. Instead, the tbDEX protocol allows participants to negotiate trust directly with each other — or mutually and voluntarily rely on trusted third-parties to vouch for the counterparty.”
The blog further explained there is a need of such platforms and adds “that the economy should be inclusive. We need to build on-ramps to this future where everyone can access and participate in the economy.”
“The tbDEX protocol also facilitates the secure exchange of the minimum necessary identity information acceptable to counterparties in order to satisfy requirements, be they legal, regulatory, or related to any other consideration of risk.”
Earlier, Square’s head of strategic development Mike Brock tweeted, “this is the problem we’re going to solve: make it easy to fund a non-custodial wallet anywhere in the world through a platform (tbDEX) to build on- and off-ramps into bitcoin. You can think about this as a decentralize[d] exchange for fiat.”