- Square Inc. launched Square Bitcoin, a program allowing its merchants to accept bitcoin payments.
- Over 4 million merchants using Square’s platform in the U.S. can now add bitcoin point-of-sale locations, except those based in New York.
- The program offers zero processing fees on bitcoin transactions until 2027.
- The initiative aims to promote bitcoin as a daily spending currency, supported by integration with the Lightning Network for faster payments.
- Legal clarity around tax treatment and exemptions for bitcoin transactions in the U.S. is still needed to facilitate everyday bitcoin commerce.
Square Inc., a company linked to American technologist Jack Dorsey, introduced Square Bitcoin on October 8, 2025, enabling merchants to accept bitcoin payments. Available to all U.S.-based Square businesses apart from those in New York, the program supports various business types upon completion of Square’s Know Your Business verification process.
Square Bitcoin includes Bitcoin Payments and Bitcoin Conversions, allowing merchants to accept bitcoin, hold it, convert it to fiat currency, accept fiat payments, or convert fiat back to bitcoin. The program offers zero processing fees on bitcoin transactions until 2027. Jack Dorsey stated on X that merchants have been able to accept bitcoin payments since November 10 under this program. Square Bitcoin serves over 4 million merchants, creating the potential for a vast network of bitcoin payment points across the United States.
Miles Suster, Bitcoin Product Lead at Block, Inc., the parent company of Square, explained in a blog post that bitcoin offers business owners a new financial tool with faster settlement and lower fees than traditional payment methods.
While other initiatives like El salvador’s government-supported bitcoin wallet have not facilitated widespread merchant adoption, Square Bitcoin stands out due to its large merchant base and the maturity of bitcoin’s payment network, including support for the Lightning Network—a method that enables quicker and cheaper bitcoin transactions.
Parker Lewis, Head of Business Development at Zaprite.com, described on X that being able to spend bitcoin directly for goods and services is essential for its value as a currency. Square Bitcoin combines a substantial number of merchants, robust payment infrastructure, and an engaged user community, which helps demonstrate bitcoin’s potential as an everyday currency.
However, the program faces challenges regarding tax treatment in the U.S. Currently, bitcoin is classified as property for tax purposes, and spending it triggers capital gains or losses, creating a reporting burden for consumers. Senator Cynthia Lummis, a supporter of bitcoin and digital assets, called for tax exemptions during a post on X, noting the need for a “reasonable ‘de minimis’ exemption” to make bitcoin practical for daily use.
IRS Notice 2014-21 confirms bitcoin is treated as property, making small transactions taxable events. The expansion of Square Bitcoin opens the discussion for potential tax exemptions on everyday bitcoin transactions, which could promote broader use of bitcoin as money in the United States.
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