A New Era for Twitter
Elon Musk has filed documents to reshape Twitter into a financial institution. This means that cryptocurrencies like Bitcoin and Dogecoin could soon be traded on the platform. On November 4th, Twitter submitted a request to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department, expressing its intention to offer money services within the United States and several of its territories.
Musk’s Twitter Vision
Musk has previously revealed his ideas for how payments could function on Twitter. He emphasized that debit cards and bank accounts would be linked to streamline transactions.
He also shared his ambition to transform Twitter into an “everything app” in the future, similar to WeChat. In China, WeChat serves as the primary social platform for over a billion users, who use it for news, navigation, and dining. Musk envisions Twitter following a similar model. This new structure of Twitter mirrors the operational model of online payment company PayPal, a company Musk co-founded.
Elon’s Journey with Digital Currencies
Anyone involved in providing money transfer services falls under the category of a ‘money transmitter.’ According to Musk’s vision, Twitter would evolve into a hub for live video, instant messaging, content streaming, and even micropayments. This would significantly boost Twitter’s popularity and user engagement.
This move to turn Twitter into a payment platform would not be Musk’s first venture into the digital currency space. Musk previously launched X.com, an online financial service company in 1999, which was later acquired by PayPal in 2000. Musk has always maintained that he had a “bigger vision” for X.com’s future.
The Twitter Acquisition and Musk’s Vision
The sale of Twitter to Musk was finalized on October 27, 2022. On November 1, 2022, Musk strongly suggested that he wants $DOGE (or possibly a new cryptocurrency) to become Twitter’s ‘official’ digital currency. At 4:13 a.m. UTC on November 27, 2022, Musk tweeted slides from a talk he had given at Twitter.
Slides from my Twitter company talk pic.twitter.com/8LLXrwylta
— Elon Musk (@elonmusk) 27 november 2022
The final slide of Musk’s presentation hints at plans to integrate payment functionality into Twitter 2.0, though he has not yet specified the details. It remains uncertain whether Musk can fulfill these ambitious plans, as the billionaire is known for making bold claims that sometimes fall short.
Attempts to create ‘super apps’ have been made by companies like Google, Snap, Meta, and Uber, but they haven’t taken off in the U.S. as they have in China. This is largely because U.S. consumers are already accustomed to using a variety of apps for different needs, such as shopping, social interaction, and making payments.
Jasmine Enberg, Principal Analyst at Insider Intelligence, pointed out that changing consumer habits is difficult, especially when people in the U.S. are used to a fragmented approach with multiple apps for various activities. She also noted that super apps are likely to gather more personal information, which could pose challenges, especially when trust in social media platforms is at an all-time low.
Conclusie
Musk’s vision has the potential to reshape how the public perceives digital currencies and expand their use for various functions. If the public embraces Musk’s ambitious plans, Twitter could thrive and experience significant growth in its user base. As always, CryptoChipy will be with you every step of the way to keep you informed on the latest developments.
