Elon Musk seeks crypto-focused Twitter payments system

Key Takeaway:

Twitter is preparing to launch a payments tool with the aim of potentially integrating cryptocurrency support in the future, starting with fiat currencies.

Twitter’s Upcoming Payments Tool to Initially Support Only Fiat Currencies, But Elon Musk Wants to Accommodate Cryptocurrencies in the Future

Twitter CEO, Elon Musk, has instructed his developers to create the platform’s payments system in a way that would allow the integration of cryptocurrency functionality in the future. According to sources familiar with Twitter’s plans, the payments feature will support fiat currencies at first but be built to accommodate cryptocurrencies should the opportunity arise.

Twitter has been teasing the idea of introducing payments to its platform for a while now, as part of Musk’s plan to make Twitter an “everything app.” However, the company has remained vague about the involvement of blockchain or cryptocurrency technology in these payments.

Buying Twitter is an accelerant to creating X, the everything app

— Elon Musk (@elonmusk) October 4, 2022

In early December, images of “Twitter Coins” were leaked, sparking hope that the payments and tipping feature on the platform would involve cryptocurrency. However, leaked images from early January made no mention of crypto or blockchain technology, disappointing the community.

Unconfirmed rumors also emerged last October that Twitter was working on a wallet prototype that would support crypto deposits and withdrawals. But, for now, it appears that the payments system will only support fiat currencies.

Twitter has begun the process of applying for state-based regulatory licenses across the United States that would allow it to introduce payments to the platform. The company hopes that the U.S. licensing process will be completed within a year. In November, “Twitter Payments LLC” registered with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), which would allow it to process payments.

In a Twitter Space event, Elon Musk shared his vision of allowing bank accounts to be connected to Twitter profiles and incorporating debit cards, along with the platform’s ability to facilitate money transfers. Following the approval of U.S. licenses, Twitter would seek regulatory approvals internationally, according to one of the Financial Times’ sources.

Joy Rice

Joy Rice is a computer science graduate and crypto writer with a strong understanding of blockchain technology. She writes about the latest developments in the crypto industry, and is passionate about educating and informing readers about the potential uses of blockchain.