What Happened?
Musk has indirectly confirmed that X's payment and banking service X Money will soon launch a test version, marking a key step in his goal to turn X into an all-in-one app similar to WeChat. X has been actively obtaining remittance licenses across the U.S. and considering the integration of blockchain technology, Bitcoin, or other cryptocurrencies.
The launch of X Money will leverage X's massive user base and plans to provide payment and banking services. However, its success will depend on building user trust, offering appealing services, and ensuring a seamless user experience. This initiative has also sparked some controversy, as U.S. senators have questioned its motivation to obtain users' personal financial data.
Musk not only aims to provide everyday financial services through X Money but has also expressed a grand vision of moving the U.S. Treasury onto the blockchain. This indicates that he is not just content with payment functionalities but has long-term goals to fundamentally reshape the financial system.
Musk Promotes 'X Money': A New Chapter and Challenges in Fintech
Tesla CEO Elon Musk is actively expanding into the financial services sector through his "all-in-one app" X, hoping to disrupt traditional Wall Street finance. Recently, Musk personally retweeted a post on the X platform, indirectly confirming that the highly anticipated new service "X Money" is set to launch soon.
X Money is a financial service feature that Musk's social platform X (formerly Twitter) is actively developing. In simple terms, Musk hopes to transform X from a social media platform into an "everything app" capable of handling payments, banking, and potentially cryptocurrencies in the future, similar to China's WeChat.
According to reports, the post retweeted by Musk stated that "X will launch X Money," which was subsequently shared by the widely followed account "Tesla Owners Silicon Valley," emphasizing its inclusion of functions such as "payments, banking." Musk responded, indicating that this will be "a rather limited test version" and stressed that "extreme caution must be exercised when it comes to people's savings."
According to data from the Nationwide Multi-State Licensing System, as of the time of publication, X has been actively obtaining multiple remittance licenses for X Money throughout the U.S., currently holding 41 licenses. The official account of X Money also indicates that the platform is expected to be officially launched this year.
The Ambition to Create an 'All-in-One App'
Since Musk acquired Twitter and renamed it X, he has been actively obtaining remittance licenses across various U.S. states, aiming to transform X into an "all-in-one app" similar to China's WeChat. More ambitiously, in February this year, Musk expressed his hope to move the U.S. Treasury onto the blockchain, which is the foundation of Bitcoin and other cryptocurrencies.
X's CEO Linda Yaccarino revealed that after Twitter was renamed to X in 2023, the app will feature "infinite interactivity," including support for various media formats and incorporating payment and banking functions, also predicting that payment features will land on the X platform by 2025.
This news has sparked widespread speculation about whether X might adopt or support Bitcoin, cryptocurrencies, or stablecoins pegged to the dollar, as these technologies help enhance transaction speed and reduce costs.
GlobalData's banking and payment analyst Joanne Kumire points out that X Money's strategic layout in the payment sector, including obtaining licenses, leveraging Visa support, and a large user base, has laid a solid foundation. However, the key to success lies in addressing user trust issues, providing compelling incentives for use, and delivering a seamless and innovative payment experience.
However, Musk's ambitions in fintech have also sparked some controversy.
Musk, who is deeply involved in government affairs through DOGE (Department of Government Efficiency), has quickly faced backlash from U.S. officials. For instance, U.S. Democratic Senator Elizabeth Warren criticized X's payment platform plans in February, questioning Musk's attempt to obtain users' personal financial data through the financial platform despite losses on X.
Despite facing multiple challenges in technology, trust, and regulation, Musk has demonstrated his firm determination for this ambitious plan by confirming the release of the test version on the X platform. How the development of X Money will impact the existing financial landscape is worth continuous attention.
References: Cointelegraph, Forbes
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