Despite Elon Musk’s vision to add more features to X, making it a multipurpose platform, he doesn’t plan to integrate crypto payments on X.
Bloomberg obtained a 350-page document and emails that indicated that the billionaire CEO of Tesla and SpaceX intends to convert X into a Venmo-like application. This application would enable users to store, transmit, and receive money through their X accounts and pay for goods and services from physical stores. However, it would not facilitate crypto transactions.
During an all-hands call with X employees in October of last year, Musk previously hinted at the intended metamorphosis of X into a financial hub.
“When I refer to payments, I refer to an individual’s financial situation.” We will include it on our platform if it pertains to money. Securities, money, or any other form of currency. Therefore, it is more complex than sending $20 to my friend. In a recorded meeting, Musk declared that “you won’t need a bank account.” The Verge obtained the audio clip.
The crypto community had anticipated that the plan would incorporate digital asset payments, given Musk’s prior involvement in the emergent economy. The billionaire CEO is a staunch advocate of Dogecoin (DOGE) and has previously accepted Bitcoin (BTC) payments for Tesla products.
Nevertheless, Bloomberg’s documents and emails indicate no intention to incorporate digital asset payments or facilitate crypto transactions on the platform.
X Payments and Regulatory Compliance
As previously stated, the payment services will be provided by a dedicated subsidiary, X Payments, which has submitted applications to become a payment transmitter in all 50 states of the United States.
The initiative aims to facilitate the company’s conformance with local regulations in various American jurisdictions. X Payments has received regulatory sanction from 28 states, including Wyoming, Rhode Island, Utah, and Louisiana, as the company’s website indicates.
The documents also demonstrated that the company is willing to endure a multi-year process to obtain the necessary permits to provide services to consumers throughout the United States.
Initially, Musk intended to implement the payment services globally in the first quarter of 2024; however, regulatory obstacles necessitated a postponement of the release to a later date.
Cheap Transaction Fees to be Provided by X
The company informed Massachusetts’ financial regulators last year that it would persist in facilitating international money transfers once it had obtained sufficient permits in most US states. When prepared, the organization intends to resubmit its application to the financial authorities.
The introduction of payment features on X is perceived by X Payments as a means of enhancing its business offerings by fostering “increased participation and engagement” on the app. To maintain a competitive edge over other payment platforms, such as PayPal and Venmo, the organization intends to implement transaction fees that are comparatively low upon the commencement of transaction processing.