2024-03-30 18:38:14

The introduction of the financial function of the platform X, formerly known as Twitter, has encountered a serious obstacle, and its payment function, which also supports cryptocurrency, will therefore be delayed.

The X platform would be expanded with a financial function

Elon Musk’s platform X, formerly known as Twitter, is regarding to introduce its much-anticipated in-app payments feature. The platform is trying to lay the groundwork for its debut by securing the basic licenses. Given the Boss his positive attitude towards cryptocurrency and his love for Dogecoin, the cryptocurrency community is optimistic. They are confident that digital devices will also find their place in Elon Musk’s all-encompassing application.

However, while X lays the groundwork for the upcoming peer-to-peer (P2P) financial ecosystem, there has been lingering uncertainty surrounding which cryptocurrencies will be adopted.

Does X’s payment function not require a crypto license yet?

X Corp has made remarkable progress recently. Multiple types of money management and transfer permit obtained in various states of the United States in preparation for the introduction of the X payment function. At the time of writing, X is licensed in 22 of the 50 states. New Mexico, Oregon and Illinois are the newest members of the list.

The cryptocurrency community, especially Dogecoin owners, get more and more excited every time a new state is added to the list. As memecoin is also expected to be integrated into the social media application.

However, while expectations are reaching unprecedented heights, a crucial piece of the puzzle seems to be missing: the Virtual Currency Business License, or BitLicense, required to manage virtual money.

Authorization is still pending

Under New York banking law and similar regulations in a number of other states, businesses like X Corp must obtain a separate BitLicense in addition to a money transfer license. This is necessary in order to carry out activities related to virtual currency, such as cryptocurrency transactions.

Although X Corp has already applied for a money transfer license in these states. However, it has not yet applied for a virtual currency license in jurisdictions where it is required. Meanwhile, its competitors, including Robinhood, PayPal, Coinbase and eToro, have all long since acquired virtual currency licenses.

The absence of a request for a virtual currency license from X Corp actually pours clear water into the glass. And at the same time, it derails the ambitions of cryptocurrency enthusiasts, especially Dogecoin owners who may be sad regarding this.

Dogecoin support in X’s payment module is currently uncertain

Given that Musk has so far openly supported Dogecoin, often proclaiming the best dog coin as “the people’s crypto”, DOGE has so far been a prime candidate for integration into the X payment function.

Of course, Dogecoin’s market value has continued to respond positively to news of upcoming X payment features. This is fueled by the anticipation of memecoin getting into the app. Earlier, when the social media giant announced that it had received approval in the latest three states, DOGE was up 10%.

However, considering that there are no funds to create the necessary legal foundations to integrate cryptocurrencies into X’s payment application, memecoin enthusiasts may need to rethink their enthusiasm.

The rise continues on the other side:

• X recently struck a deal with eToro to allow users to buy digital assets on the social platform through plugins.
• The X Payments feature is slated to launch in mid-2024, giving the social media giant a chance to potentially participate in the next bull market cycle.
• The price of Dogecoin has already risen by 200% this year mostly because of Musk.

Why does it all matter?

As a social media giant with billions of users, X now has a great opportunity to drive cryptocurrency adoption and transform the industry by integrating crypto into its payment functionality. However, the lack of licenses to manage digital assets suggests that the social media giant will not be able to meet the expectations of crypto-enthusiasts for now.

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