The licensing of the esteemed social media application X ( formerly Twitter) as a currency transmitter by the authorities in Rhode Island represents progress for the company’s entry into the financial services industry. The Nationwide Multi-State Licencing System (NMLS) records that X’s application for a Rhode Island currency transmitter licence was accepted on August 28.
As X closes in on crypto payments, the update has spread like wildfire among businessmen. Companies doing financial services on behalf of users linked to sending and receiving money, which includes both fiat and crypto assets, are legally required to have the licence. X will be able to custody, transfer, and trade digital currency thanks to the authorisation.
Given that Elon Musk, who frequently supports Dogecoin on X, will benefit greatly from his social media application receiving a crypto licence. Dogecoin’s price increased by about 5% at the time the news broke. It fell more than 1% yesterday, settling at $0.065. It has decreased by around 7% so far this year. However, if the renowned ‘Dogefather’ Elon Musk continues to promote and add it for crypto payments on X, the value of the cryptocurrency token might increase over the next months.
Musk’s X – The all-rounder App Prodigy
In Elon Musk’s quest to make X an “everything app” that accepts cryptocurrency and fiat payments, the highly sensational event as X closes in on crypto payments represents a significant advancement.
X will now be able to transfer, store and exchange several digital assets, especially Bitcoin, on behalf of its users — thanks to the introduction of these new services. Additionally covered by this licence are suppliers of related services including crypto exchanges, payment processors and digital wallets.
Although it has been claimed that the planned X payments feature will, in the beginning, only support fiat money, Musk is said to have told X developers to create the platform’s payments system in a way that will allow for the addition of cryptocurrency capabilities in the future.
The authorization follows X obtaining licences as a money transmitter in Michigan, Missouri, and New Hampshire, all of which were authorised on July 5. With its most recent licence, X now has transmitter licences in seven different American states.
This act of registration and verification is in tandem with The Rhode Island Department of Business Regulation, which has outlined that anyone or any entity engaging, on behalf of others, in the dealings and management of virtual currency or monetary transactions involving virtual currency must obtain a currency transfer license.
Some observations about the future of X
If X introduces payment functions, it is still unknown precisely what financial services will be made available. However, given that X closes in on crypto payments, it could be reasonably inferred that the ambit of its features under the zealous plans of Elon Musk would be quite wide. It is noteworthy to mention that this announcement comes just a week after Elon Musk put Dogecoin’s price on a rollercoaster and after having reported to tweet that X is a place for both ‘dog and Doge.’
According to individuals with direct knowledge of the company’s intentions, X would first provide fiat currency transaction services akin to PayPal, which Musk co-founded, with room for future cryptocurrency inclusion.
According to recent reports, it was no secret that X has been actively and ambitiously directing itself towards the world of payments. Most notably, the company’s presence in the cryptocurrency space has also been greatly expanded. Collaboration between X and Strike, a well-known Bitcoin payment software, is one noteworthy action. Due to this synergetic relationship, users can now easily give and receive Bitcoin tips.
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