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It appears that Twitter (aka X) users will not be able to use the platform to send or receive cryptocurrencies, at least not any time soon.
Crypto enthusiasts have long speculated as to whether Elon Musk—a major proponent of the Dogecoin meme coin—would integrate digital tokens into the platform as he aims to build an “everything app.” However, new regulatory documents show that while Musk is indeed moving to launch a payments service, it does not appear to have crypto in its sights, per Bloomberg.
What the documents do reveal, rather, are plans for a subsidiary called X Payments, which has been approved for money transmitter licenses in 28 states, with licenses sought in the remaining states as well. X Payments could provide a payments feature for users that resembles Venmo or Zelle.
It could be that crypto may be integrated into the payments system at a later date, as Dogecoin supporters continue to hold out hope. To be sure, the goals of X Payments are not entirely clear from the documents and statements made by Musk and Twitter CEO Linda Yaccarino.
X told regulators that it sought “increased participation and engagement” from users through its payments platform, and that it only expects to charge “de minimis fees” at the time of launch.
At the same time, the company’s revenue was down 40% year-over-year for the first half of 2023 after Musk completed his purchase, and Twitter may need to recover that lost revenue through new initiatives.
Even increased engagement may be a lot to ask for, as customers are notoriously loyal to banking and payments services. Tech leaders including Google and Apple have famously struggled to gain traction with in-house payment platforms.
Nonetheless, Musk remains a crypto enthusiast. Besides previous Dogecoin price spikes that he prompted with a series of tweets, as well as Tesla’s once-massive Bitcoin stash, Musk has reportedly spent years exploring the potential for crypto payments.
Meanwhile, in the midst of Twitter payments reporting, Dogecoin is down 12% in the last week.
On Monday, Yaccarino said in an interview that Twitter’s payments platform is coming “soon,” and that the company’s “financial ecosystem” will first launch in the United States.
Edited by Andrew Hayward