X secures fiat, crypto payments license from Rhode Island authorities

Elon Musk – Elon Musk Colorado 2022 (cropped 2) – CC BY-SA

X, formerly Twitter, has secured a currency transmitter license from Rhode Island’s regulatory authorities. This license is obligatory for companies engaged in financial operations on behalf of users, encompassing the transfer of both traditional and cryptocurrency assets.

This endorsement allows X to store, move and trade digital currencies. The authorization for X’s Rhode Island Currency Transmitter License was granted on August 28, per the Nationwide Multi-State Licensing System (NMLS).

The specific financial services that will be accessible upon the launch of X’s payment features remain uncertain. Insiders knowledgeable about the company’s intentions have suggested that X will commence by providing services for fiat currency transactions resembling those offered by X owner Elon Musk’s co-founded platform, PayPal.

Moreover, reports indicate that Musk has purportedly directed the platform’s developers to construct the payment infrastructure to enable the integration of cryptocurrency capabilities down the line.

This authorization arrived approximately eight weeks after X obtained licenses as a money transmitter in Michigan, Missouri and New Hampshire, all of which received approval on July 5. X’s most recent license signifies a cumulative count of seven U.S. states in which it has successfully acquired transmitter licenses.

The social media platform has facilitated the use of cryptocurrencies in the previous years. In 2021, X, then recognized as Twitter, allowed users to receive Bitcoin tips. In the subsequent year, the platform incorporated NFTs.

Musk’s stance on cryptocurrencies and X’s plans

Musk has often expressed his support for cryptocurrencies, especially Dogecoin (DOGE), and the X platform is anticipated to eventually incorporate a digital wallet. Sources indicate that Musk’s company, Tesla Inc., currently holds 10,725 Bitcoin (BTC) in its holdings.

The acquisition of the aforementioned licenses by Twitter Payments LLC was something that meme coin enthusiasts had anticipated. This development has led to a more than five percent rise in Dogecoin prices, according to Coinmarketcap data.

Musk’s ‘Everything App’

While Musk has emphasized that X has no intentions of introducing its own cryptocurrency token, the billionaire has been discussing the concept of developing a so-called everything app for a while now. This envisioned application would encompass social media and messaging features and include functionalities for making purchases and sending money.

Given Musk’s affinity toward Dogecoin, the everything app will likely allow payments and the transfer of funds in Dogecoin. Brian D. Evans, the CEO and founder of BDE Ventures, a Web3 venture studio and advisory firm, said, “Elon clearly has an affinity for DOGE, almost as part of a running joke, but I wouldn’t be surprised if he actually went through with enabling payments via DOGE.”

Earlier this year, Twitter temporarily replaced its logo with Dogecoin’s Shiba Inu symbol for several days, which led to a significant but short-lived surge in DOGE’s value. Last month, following Twitter’s rebranding to X, the token also experienced an increase in value.

Musk eventually shared a meme acknowledging the change, followed by his closest approximation of an explanation—a reference to a jest made by a follower in March 2022, proposing that he should purchase Twitter and replace the logo with Doge.

The official Dogecoin account responded to this with a tweet: “Very currency. Wow. Much Coin. How Money. So Crypto.” Some users speculated that it might have been intended as an April Fool’s Day prank that the company couldn’t execute on time by April 1.

Others pondered whether it was an attempt to divert attention from a legal case involving Musk. The change coincided with Musk’s recent move to ask a U.S. court to dismiss a $258 billion lawsuit filed against him by Dogecoin investors, who alleged his involvement in a pyramid scheme.