Elon Musk is planning to launch a new payment service on Twitter named X Payments. What is peculiar about this announcement is that he has excluded cryptocurrencies from this payment method. The users of this payment method cannot make transactions using any cryptocurrency. Elon Musk made this announcement soon after Twitter was awarded the money transfer license by the New Hampshire state authorities; Twitter would soon be starting its operations as Twitter payments LLC in the state.
This move from Elon Musk, who was an ardent supporter of Dogecoins, has come as a surprise to the Web3 community all over the world. Elon Musk has well thought out plans about the future of this social media linked payment method, but cryptocurrencies do not have a space in these plans.
Musk’s plans to exclude cryptocurrencies from the payment ecosystem, though a surprising move, is carefully planned in the light of the high instability of the crypto market. Of late, many new cryptocurrencies have emerged in the market, but it is a notable fact that there are no definite ways to regulate this decentralized ecosystem. Even though the main highlight of the cryptomarket is this lack of regulatory interference, it also can be a deterrent for the adoption of cryptocurrencies to the mainstream payment ecosystem.
X Payments
The new payment method, which is named as X Payments, is expected to be launched sometime this year itself. This move is a step in the process of making the social media platform an “everything app”. Elon Musk had earlier said that he would like to make X like Pay-Pal or Venmo, the two major payment services in the world.
As per the latest news, X Payments can be used to transfer money, buy products and services, and store money on the account. The main aim behind setting up the payment service is to increase people’s engagement and participation on this social media platform. This payment method is envisioned to be free of any transaction costs, which is thought to make it a favorite of many people.
What Are The Implications Of Musk’s Decisions On The Market?
Elon Musk’s decision to not include cryptocurrencies under the purview of the X Payments services was met with mixed feelings by the concerned stakeholders. While crypto supporters view this as a backstab on their efforts at universalising crypto adoption, the advocates of traditional financial systems welcome this announcement as an effort in safeguarding world finance from the volatility and uncertainty that prevails around the decentralized financial ecosystem. Many others view this as a strategic move that can be reconsidered once the general skepticism about the cryptocurrencies resolves and the market becomes more bullish about crypto adoption.
Another major ramification of Elon musk’s announcement was the fall in prices of Bitcoin. The price of Bitcoin fell by about 3.6%-4% soon after Musk’s tweet. The price of Dogecoins also saw a downfall. Musk’s announcement was seen as a major setback to the prominence of digital currencies, which has resulted in such huge ripples on the market. Experts say that Bitcoin will see a further price dip as many investors would back out from buying and storing cryptocurrencies in future, thinking that it is generally unacceptable.
The Bottom Line
X Payments, once it materializes, will become a strong force in the online money transfer arena. Its acceptance as a global money transfer service is undoubted. The simplicity of the transaction interface along with the global acceptance of the platform and the zero transaction fees, together with the platform’s easy accessibility will make X Payments a favorite of all.
Even though Musk’s hostility towards cryptocurrency and its adoption on the payment system has turned out to be counterintuitive and is a side stepping on his own love for Dogecoins, many experts are in the hope that this is not an ultimatum on the future of cryptocurrencies. Many investors and experts expect Musk to reconsider his decision once the irregularities of the cryptomarket are resolved and cryptocurrency becomes more stable and acceptable.
Nevertheless, X Payments is set to make a revolution in the digital payments ecosystem and is poised to become the most sought after payment method in the near future.
