Elon Musk Has No Plans to Integrate Crypto Payments on X

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As a researcher with a background in finance and technology, I find Musk’s announcement of X’s transformation into a financial hub intriguing. The idea of offering users the ability to store, send, and receive money through their X accounts and pay for goods and services from physical stores is an interesting one. However, the lack of plans to integrate digital asset payments is disappointing, given Musk’s history with the crypto community and his previous acceptance of Bitcoin payments for Tesla products.

Based on a 350-page report and emails obtained by Bloomberg, Elon Musk, the CEO of Tesla and SpaceX, is planning to convert X into a user-friendly financial platform. With this transformation, account holders will be able to store, transfer funds, and make payments for goods and services at physical stores directly through their X accounts, but there will be no support for cryptocurrency transactions.

Previously, Elon Musk had dropped hints about X’s intended transition into a financial center during a company meeting with X employees back in October of the previous year.

In simpler terms, Musk explained that when he uses the term “payments,” he’s referring to much more than just sending money to someone. Instead, it encompasses an individual’s entire financial situation, including securities and other monetary transactions. He emphasized that this goes beyond simple transactions like transferring $20 to a friend, and could potentially eliminate the need for traditional bank accounts.

The crypto world was anticipating that Musk’s proposal would involve digital currency transactions, given his past involvement in the burgeoning economy. Notably, Musk has accepted Bitcoin and Dogecoin as payment for Tesla merchandise and is a known advocate for these digital assets.

Based on the documents and emails I’ve examined as a researcher, there seems to be no intention of incorporating digital asset payments or supporting cryptocurrency transactions on the platform at this time.

X Payments and Regulatory Compliance

I’ve come across the news that our company intends to provide payment services through a separate entity named X Payments. They have applied for licenses to operate as a payment transmitter in all 50 US states.

The company’s strategic action enables it to legally conduct business in multiple American regions, adhering to state-specific regulations. As stated on their website, X Payments has secured necessary approvals from 28 U.S. states such as Wyoming, Rhode Island, Utah, and Louisiana.

The documents revealed that the company is ready to endure a lengthy, multi-year procedure to obtain the necessary permits and provide services to users nationwide in the United States.

At first, Musk intended to launch global payment services by the first quarter of 2024. However, unexpected regulatory obstacles emerged, forcing him to delay the rollout to a later time.

X to Offer Cheap Transaction Fees

Last year, the company informed Massachusetts financial regulators that it intended to persist with facilitating international money transfers once sufficient permits were obtained in most US states. The company intends to reapply to the regulatory body when it is prepared to do so.

X Payments views the integration of new payment functions into its platform as a means to enhance its business value proposition by fostering greater user involvement and interaction on the app. In order to maintain competitiveness against peers such as Venmo and PayPal, the company intends to levy moderate transaction fees when handling transactions for users.

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2024-06-21 16:27