Elon Musk’s X (formerly Twitter) Obtains Currency Transmitter License, Hinting at Crypto Payments
Elon Musk’s venture, X, has acquired a currency transmitter license in a US state, suggesting that the social media platform, formerly known as Twitter, might soon enable cryptocurrency payments alongside traditional fiat currencies. This license allows the platform to facilitate the storage, transfer, and exchange of digital currencies. Musk, who took over X last year, has expressed his intention to turn it into a comprehensive “everything app,” envisioning a platform that enables communication, content sharing, and potentially payment processing.
License Acquisition and its Significance
Recent reports indicate that X has obtained a currency transmitter license in Rhode Island, which is a legal requirement for money transfer companies in the United States. This move signifies the platform’s potential entry into the cryptocurrency payment space.
Introduction of Cryptocurrency Payments
While initial reports suggest that the payments feature on X might begin with support for fiat currencies, there are indications that the platform could later expand its capabilities to include the transfer and exchange of cryptocurrencies.
Market and Coin Reactions
Following the news, the cryptocurrency market experienced a positive surge in value. The overall valuation of the cryptocurrency sector increased by four percent overnight, reaching a total value of $1.09 trillion (approximately Rs 90,07,269 crore) according to CoinMarketCap. Musk’s favored cryptocurrency, Dogecoin, also saw its value rise by over three percent, trading at $0.066 (roughly Rs. 5.42).
Observations and Future Expansion
Interestingly, Elon Musk himself has not made any public statements regarding X’s acquisition of the currency transmitter license. It is noteworthy that Rhode Island is not the sole US state to grant this license to X. States such as Michigan, Missouri, and New Hampshire, among others, have previously approved the license for X, with Rhode Island becoming the seventh state to do so.
The acquisition of a currency transmitter license by X signifies a potential expansion of the platform’s services into the realm of cryptocurrency payments. While the initial focus might be on fiat currencies, the future could see X enabling users to transact and exchange cryptocurrencies, aligning with Elon Musk’s vision of turning X into a comprehensive platform for communication, content sharing, and financial transactions.