By
Godfrey Benjamin
June 18th, 2024
Since Elon Musk’s takeover in October 2022, social media platform X has introduced monetization for content creators and subscription models, aiming to become an “everything platform.” However, there are no plans for accommodating crypto enthusiasts on the platform.
According to a 350-page document and emails seen by Bloomberg, the billionaire CEO of Tesla and SpaceX wants to transform X into a Venmo-like app where users can store, send and receive money through their X accounts and pay for goods and services from physical stores but not crypto transactions.
Musk previously hinted about the planned transformation to turn X into a financial hub during an all-hands call with X employees in October last year.
“When I say payments, I actually mean someone’s entire financial life. If it involves money, it’ll be on our platform. Money or securities or whatever. So it’s not just, like, send $20 to my friend. I’m talking about, like, you won’t need a bank account,” Musk said in a recorded audio of the meeting obtained by The Verge.
The crypto community had hoped the plan would include digital asset payments due to Musk’s history with the emerging economy. The billionaire CEO had previously accepted Bitcoin (BTC) payments for Tesla products and is an ardent supporter of Dogecoin (DOGE).
However, according to the documents and emails obtained by Bloomberg, there is no plan to integrate digital asset payments on the platform or even support crypto transactions.
X Payments and Regulatory Compliance
As reported, the payment services would be offered through a dedicated subsidiary, X Payments, which has submitted applications to become a payment transmitter across all 50 US states.
The move aims to enable the company operate across different jurisdictions in America in compliance with local regulations. According to the company’s website, X Payments has obtained regulatory approval from 28 states, including Wyoming, Rhode Island, Utah and Louisiana.
The documents also showed that the firm is prepared to wait for a multi-year process to get the permits it needs to service users across the United States.
Initially, Musk planned to roll out the payment services globally in the first quarter of 2024 but encountered regulatory hurdles that postponed the release to a future date.
X to Offer Cheap Transaction Fees
Last year, the company told financial regulators in Massachusetts that it would continue its pursuit for international money transfers after obtaining enough permits in the majority of US states. The firm plans to resubmit its application to the financial authorities when its ready.
X Payments sees the introduction of payment features on X as a way to improve its business offerings through “increased participation and engagement” on the app. The company plans to charge relatively low transaction fees when it starts processing transactions for users to remain competitive with other payment platforms like Venmo and PayPal.