Despite the recent struggles of Bitcoin to break its $3,000 psychological mark again, the high fluctuations in cryptocurrency prices, and all the waves caused by the delay of spot Bitcoin ETF approval, news broke that X (Twitter) has recently obtained a license to permit cryptocurrency activity in the U.S., granted by Rhode Island regulators.
X platform, the former Twitter acquired by Elon Musk on 27th October last year, has been granted a license to store, hold, convert, and transfer Bitcoin, Ethereum, and other cryptocurrencies. However, it’s not the first time SpaceX’s CEO, Elon Musk, has made forays into the cryptocurrency realm. In 2021, X, back then recognized as Twitter, incorporated TipJar, a feature that would permit sending and receiving tips in Bitcoin. Also, the highly controversial figure has previously articulated intentions to provide users with a broader palette of financial services, with digital currency included.
According to insiders acquainted with the company’s plans, the corporation’s initial services will be similar to the currency transaction services of PayPal – another company co-financed by Tesla’s CEO. The whole scope is to drive mainstream crypto adoption and take advantage of the functionality of cryptographic transactions, thus attracting a broader user base and inflicting more confidence in any aspiring investor curious to find out what is the price of Bitcoin to determine whether investing in it is worth a shot.
So, what does Elon Musk’s latest action signify, and why should you care?
Rhode Island permits Twitter Payment LLC to carry out crypto transactions
Authorities from Rhode Island, one of the smallest U.S. states, have empowered X (Twitter) to offer a wide range of services related to digital currencies. The platform intends to incorporate crypto payments, and under the new regulatory permission, it is now authorized to handle, facilitate, and transfer digital asset movements, as well as conversions on behalf of its users of digital currencies like Ethereum or Bitcoin. This license spawns several associated service providers, such as crypto exchanges, payment gateways, and digital wallets.
The state’s approval is more than just a mandate from the state; it’s a strategic endeavor that backs up the broader objectives of X (Twitter) and Elon Musk.
The afferent license, also regarded as a currency transmitter license, is mandatory for organizations wanting to carry out crypto-related activities on their users’ behalf. This includes a wide range of digital asset-related activities, like processing payments, managing wallets, or administering exchanges.
Rhode Island’s approval aligns with the platform’s aspiration to explore ways to make crypto part of everyday payments. The new undertaking is expected to transform the connection between financial management and social networks.
As X strides into the world of crypto payments and becomes a more versatile platform, it sparks curiosity about its future impact on the digital money world. For instance, users will be more encouraged to perform and interact with services and digital money once they can make such transactions directly on the platform in a user-friendly way.
PayPal’s forays into stablecoins may have triggered Elon Musk’s initiative
The former company of Elon Musk, PayPal, has already dipped its toes into the stablecoin realm. The company now permits users to conduct cryptocurrency payments and trade these digital assets. The giant financial service provider has also issued its own stablecoin, PYUSD, tied to U.S. dollar deposits on 7th August of this year. With the potential to revolutionize web3 payments and the digital financial ecosystem, more prominent names in the cryptocurrency sphere have deployed projects to keep up with the competition and tech developments.
Therefore, it is believed that at the core of Musk’s undertaking is PayPal’s venture into the stablecoin stage. Tesla’s CEO aims to create a worldwide, decentralized application that can expand its repertoire of services and include seamless, user-friendly cryptocurrency payment transactions.
Getting the license is a step forward for the company and may boost the adoption of digital coins, likely benefitting the price of the cohort of cryptocurrencies.
Twitter strives to become a payment platform
The most recent developments of Twitter point in one direction, directly backed by the platform’s new owner, Elon Musk – to become a financial service platform. It’s not the first step the company has taken in this respect. It has already collaborated with a Bitcoin installment app to enable users to transfer and receive Bitcoin tips, enlarging their reservoir of payment alternatives. As for now, it’s speculated that the intentions are to metamorphose X into something similar to PayPal.
Furthermore, besides the ambitions to become a payment platform, Musk disclosed that the company is working to include audio and video call support. Per his disclosures, the new upgrades will be available on devices like PCs and Macs, as well as Android and iOS. The new features can be leveraged without the user providing a phone number.
So far, X (Twitter) has already obtained licenses in seven U.S. states
Twitter started its journey to gain regulatory approval across the U.S. in February of this year. Moreover, he already revealed he would implement one new revenue stream on the platform. Twitter has already explored ecommerce and tipping features to date, helped by the Lightning Network of Bitcoin, a layer-2 solution that makes transactions faster and more affordable than mainnet transactions.
Musk stated that he wants to make X an “everything app,” taking its offerings far beyond the current ones, such as media posts. The company has filed for more permits across the U.S. and has been granted licenses in seven states since June. Besides Rhodes Island, the states of New Hampshire, Georgia, Arizona, Missouri, Maryland, and Michigan entered the list of places willing to support the platform’s payment processing project.
The company is creating a versatile community platform.
The widely spread social platform X got its ducks in a row to enable a feature that would permit users to conduct cryptocurrency transactions across the network. This commitment strengthens the efforts to transform the platform into a more versatile, multi-faceted one with numerous other use cases.
The newly disclosed endeavors have the power to take decentralized applications up a notch and likely boost the fortunes of cryptocurrencies. With initiatives like X (Twitter), which enables users to research and use crypto payments, the chances for digital money to go mainstream and achieve greater adoption are also increased.