Elon Musk Intends Not To Integrate Crypto Payments On Platform X, Here's Why!

JAKARTA - Elon Musk, CEO of Tesla and SpaceX, recently revealed that social media platform X, which he took over in October 2022, will not integrate crypto payments. This is surprising to the crypto community that all this time sees Musk as a strong supporter of digital assets such as Bitcoin (BTC) and Dogecoin (DOGE).

Since the takeover by Musk, platform X has introduced various monetization models for content creators and subscription systems, with the aim of becoming a a versatile platform'. According to documents and emails seen by Bloomberg, Musk wants to turn X into a similar app Venmo, where users can store, send, and receive money through their X account as well as pay for goods and services from physical stores. However, the integration of crypto transactions is not included in this plan.

Quoted from CoinSpeaker, in a call with employee X in October last year, Musk expressed his vision of turning X into a financial hub. When I say payment, I actually talk about a person's entire financial life. If money involves money, it will be on our platform. Money or securities or whatever. So it's not just, like, sending 20 US Dollars to my friend. I'm talking about, like, you won't need a bank account," Musk said in an audio recording of the meeting obtained by The Verge.

Payment services in X will be provided through a special subsidiary named X Payments, which has applied for payment transmitters across 50 US states. The move aims to allow companies to operate in various jurisdictions in America by complying 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.

Documents also show that the company is ready to wait for a multi-year process to obtain the necessary permits to serve users across the United States. Initially, Musk planned to launch a payment service globally in the first quarter of 2024, but encountered regulatory problems delaying the launch to an undetermined date.

Last year, the company notified financial regulators in Massachusetts that it would continue its pursuit for international money transfers after obtaining sufficient permits in most US states. The company plans to re-submit its applications to financial authorities when it is ready.

X Payments sees the introduction of payment features on X as a way to increase its business offerings through the increased participation and engagement'' in the app. The company plans to charge relatively low transaction fees when it starts processing transactions for users to stay competitive with other payment platforms such as Venmo and PayPal.