diff --git a/src/common/store.js b/src/common/store.js
index 94fd523ae..63740cf4b 100644
--- a/src/common/store.js
+++ b/src/common/store.js
@@ -72,6 +72,16 @@ const migrations = {
       flags = flags.filter(f => f !== dhtClientFlag)
       store.set('ipfsConfig.flags', flags)
     }
+  },
+  '>=0.39.1': store => {
+    fileLogger.info('Running migration: >=0.39.1')
+    logger.info('[store]: Migrating to use CID version 1 for files')
+    const useCIDv1 = store.get('ipfsConfig.useCIDv1', null)
+    if (useCIDv1 === null) {
+      // if it's null, it's not set to true or false, so we set it to the new default
+      store.safeSet('ipfsConfig.useCIDv1', true)
+    }
+    // otherwise, it's already set to true or false, so we don't need to do anything
   }
 }
 
diff --git a/src/enable-cid-v1.js b/src/enable-cid-v1.js
new file mode 100644
index 000000000..09fbb09ff
--- /dev/null
+++ b/src/enable-cid-v1.js
@@ -0,0 +1,27 @@
+const store = require('./common/store')
+const getCtx = require('./context')
+const logger = require('./common/logger')
+
+module.exports = async function () {
+  const shouldUseCIDv1 = store.get('ipfsConfig.useCIDv1', true)
+
+  if (shouldUseCIDv1) {
+    logger.info('[enable-cid-v1]: Attempting to enable CID version 1 for files')
+    const ctx = getCtx()
+    const getIpfsd = await ctx.getProp('getIpfsd')
+    /** @type {import('ipfsd-ctl').Controller|null} */
+    const ipfsd = await getIpfsd()
+    if (!ipfsd) {
+      logger.error('[enable-cid-v1]: Could not get IPFS daemon controller')
+      return
+    }
+    logger.info('[enable-cid-v1]: Enabling CID version 1 for files')
+    try {
+      // @ts-expect-error - ipfsd.api is not typed properly
+      await ipfsd.api.files.chcid('/', { cidVersion: 1 })
+      logger.info('[enable-cid-v1]: CID version 1 enabled for files')
+    } catch (e) {
+      logger.error('[enable-cid-v1]: Failed to enable CID version 1 for files', e)
+    }
+  }
+}
diff --git a/src/index.js b/src/index.js
index 461fe7d71..5afc08df7 100644
--- a/src/index.js
+++ b/src/index.js
@@ -34,6 +34,7 @@ const setupSecondInstance = require('./second-instance')
 const { analyticsKeys } = require('./analytics/keys')
 const handleError = require('./handleError')
 const createSplashScreen = require('./splash/create-splash-screen')
+const enableCIDv1 = require('./enable-cid-v1')
 
 // Hide Dock
 if (app.dock) app.dock.hide()
@@ -82,7 +83,8 @@ async function run () {
       setupNamesysPubsub(),
       setupSecondInstance(),
       // Setup global shortcuts
-      setupTakeScreenshot()
+      setupTakeScreenshot(),
+      enableCIDv1()
     ])
     const submitAppReady = () => {
       logger.addAnalyticsEvent({ withAnalytics: analyticsKeys.APP_READY, dur: getSecondsSinceAppStart() })