In a significant twist, Elon Musk‘s social media platform, X (previously known as Twitter), was recognized as a money or currency transmitter in seven U.S. states, with the latest license granted by Rhode Island. The approval expands beyond the boundaries of processing crypto payments, enveloping more extensive payments providers like PayPal or Venmo.
The move indicates a broader strategy on the part of Musk’s X to go beyond just a social media platform. It signifies the billionaire entrepreneur’s plans to rival existing giant payment systems, signaling a potential transformation into an ‘everything app.’
The X platform has been steadily acquiring licenses from other U.S. states including Arizona, Maryland, Georgia, Michigan, Missouri, and New Hampshire since June. These strategic legal recognitions imply Musk’s ambitions to provide nationwide payment processing, akin to Venmo or PayPal, a venture he previously co-established.
The caveat in Rhode Island’s license permitting payments also necessitates the provision of crypto services. Musk had been vocal about his vision of a blockchain-based social media platform providing payments before the unprecedented $43 billion offer to acquire Twitter in April 2022.
Rhode Island’s Department of Business Regulation (DBR) clarifies that the license approval encompasses firms transmitting money for their clientele, adopting traditional wire transfers like Western Union and electronic transfers like PayPal. The state’s currency transmission license becomes obligatory to facilitate crypto exchange and custody business, excluding fintech cases registered as a genuine ‘agent’ of Rhode Island licensed currency transmitter.
It’s noteworthy that these state licenses, though paving the way for crypto payments, aren’t exclusively tied into those services. In New Hampshire, ‘money transmission’ is outlined as transacting the business of selling or issuing payment instruments or stored value, or receiving currency for transmission to a different location. Under federal regulations, any administrator or exchanger accepting and transmitting a convertible virtual currency or buying or selling convertible virtual currency for any reason is recognized as a money transmitter.
The licenses possessed by X are similar to those held by established payment providers like Western Union and PayPal. However, these industry players also hold additional licenses, reflecting their broad external services and state coverage.
While Musk’s venture into crypto country shows promise, we should approach it with a grain of salt. His journey to technological dominance might be worthwhile, or it may become another digital giant monopolizing various sectors. For now, we can only watch as the story unfolds.
Source: Coindesk
