Twitter Puts Dogecoin Integration on Hold with New X Payments Service
- Cryptocurrency transactions will not be supported by Twitter (now X).
- Elon Musk’s X Payments centers around usual payment methods.
- The service intends to compete with Venmo and Zelle.
- In terms of X Payments, regulatory approval has been obtained in 28 states.
In a surprising move, Twitter — now rebranded as X — won’t support crypto transactions any time soon.
Elon Musk, who was often associated with the integration of Dogecoin into the platform, is moving towards traditional payment methods with the new X Payments service.
Recent money transmitter license approvals in 28 states signal a shift from previous speculations.
X Payments: A Fresh Start for Twitter
X Payments, which is a subsidiary of Twitter, plans on launching a payment service that resembles platforms like Venmo and Zelle more closely. This means no cryptos instead opting for conventional payment systems unlike what was expected before this announcement was made. According to regulatory filings, cryptocurrency will not be supported at the launch date for this service.
The main aim behind X Payments is to increase user engagement and activity within the Twitterverse. Minimal fees during initial rollouts have been mentioned by both Musk and CEO Linda Yaccarino as part of their strategy to attract more users onto the platform which they believe will help resuscitate its financials following a 40% YoY drop in revenues recorded during H1’23 after the acquisition by Musk.
Navigating Through Regulatory & Economic Landscapes
Allowing X Payment across 28 states represents just an entry point into what could become an all-US state licensing drive thereby laying down well-regulated comprehensive payment infrastructure countrywide but this is only achievable if certain steps are followed such as gaining trust through compliance since it might be difficult breaking into traditional financial establishments given history where big techs like Google and Apple have had challenges in this space.
For Twitter, X Payments is a make-or-break situation as the platform has hemorrhaged significant revenue share and needs to come up with radical solutions if it is to regain its footing within the industry. This implies that venturing into banking services would require strategic innovation coupled with aggressive user acquisition tactics considering failures experienced by other players who are bigger than them in terms of size such as Apple or Google.
The Future Of Cryptocurrency on Twitter
Elon Musk’s track record leaves room for speculation that there might be future integration of crypto with X payments. It is worth noting that his influence within the digital asset market particularly dogecoin cannot be ignored given recent events.
Although immediate plans do not involve any form of digital money transactions regulatory approval milestones set by X Payment may pave the way for wider adoption later on down the line given certain conditions are met.
With all eyes on creating a more seamless user experience during the rollout phase, one can’t help but wonder when will cryptocurrencies be introduced onto this platform.
While these moves away from cryptos are seen as temporary measures there still remains potential for updating in the future which will bring them back into the picture again should things change around regulatory dynamics and market forces dictate so but until then what matters most now is stabilizing numbers through innovative payment platforms at Twitter.
