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Square's first-quarter performance is in the black! Twitter founder: Mobile phones will replace physical banks.

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Amid the impact of the COVID-19 pandemic this year, Twitter founder Jack Dorsey has been actively involved in the fight against the virus. Not only did he generously donate 28% of his personal wealth, but his Cash App also supported the government in distributing subsidies, enabling people to receive relief funds directly. During a recent technology summit hosted by JPMorgan Chase, Jack discussed how smartphones are increasingly pressuring traditional banks.

Payment company Square and Twitter CEO participated in the 48th JPMorgan TMC (Technology, Media and Communications) Global Virtual Conference held on Tuesday, where he explained how current technology is shifting everyday financial services from physical banks to mobile devices.

Pandemic Crisis Drives Square Adoption

As previously reported, Square, owned by Jack, received approval from the Federal Deposit Insurance Corporation in mid-March. Notably, no industrial bank has been granted such an application in the past decade, paving the way for its future banking operations. Additionally, in an interview with CNBC, Jack pointed out that Square's Cash App had provided relief funds to at least 60,000 American citizens, much faster and more efficiently than any bank.

The crisis of the coronavirus pandemic seems to be rapidly driving the adoption of Square, transforming it into a gateway for online virtual banking. With the public registering to receive stimulus checks and unemployment relief funds, Square's Cash App is thriving. Kate Rooney, a reporter covering financial markets and cryptocurrencies for CNBC, noted that Square's user base has surged from 3 million to 14 million.

Dorsey described how the general public can access complete financial services through their mobile phones:

"I have this app, and I also have a financial card. This app can serve as my payroll account, buy stocks, and even buy this strange thing called Bitcoin. It's cool, and I can even use this card at an ATM, so what else do I need?"

Firm Believer in Bitcoin

In addition to the use cases mentioned above, Cash App's net profit in the first quarter increased by 115% year-on-year. Out of the $528 million in revenue, $306 million (over 57%) came from Bitcoin transactions. Jack stated that attention should be paid to the performance in January and February rather than in March after the COVID-19 pandemic outbreak, and he also expects a possible decline in performance in the second quarter.

It is well known that Jack Dorsey is a staunch believer in Bitcoin, believing that Bitcoin will become a global currency based on the Internet. Recently, with the arrival of the Bitcoin halving, he also updated his self-introduction to a concise "#Bitcoin."

When asked on Twitter recently whether he still regularly buys Bitcoin at the maximum limit, Jack responded, "Yes."

This question stems from March 2019 when Jack stated on the podcast "Tales from the Crypt" that he buys Bitcoin on Cash App every week, but he had reached the limit for that week.

Although Jack did not specify the actual amount, the weekly limit for purchasing Bitcoin on Cash App is $10,000. Jack still ranks on the "2020 Forbes World Billionaires List," which may be pocket change for him, but if he reaches the purchase limit every week, the amount invested in Bitcoin in a year would be at least $520,000.