X (formerly Twitter) has obtained the necessary licenses to offer bitcoin, cryptocurrency payment and trading services in the United States, but the potential repercussions are particularly high for a platform with a history of being targeted by scammers. Some people are concerned.
according to Based on data from the National Multistate Licensing System (NMLS), X’s currency money machine license was approved on August 28 by regulators in the state of Rhode Island, a state in the northeastern New England region of the United States.
Also read: ‘Fraud’ bots infest social media, surpassing 1,000 on Twitter
X to develop cryptocurrency payments
Obtaining a currency transmission license is a regulatory requirement for companies dealing in bitcoin or crypto-related services. This license allows X to add the ability for millions of users to hold, send and receive cryptocurrencies directly on their site.
Elon Musk, who bought Twitter for $44 billion last October, dreams of turning X into an “anything app” like China’s social media app WeChat. Tencent-owned apps are used for messaging, payments, subscriptions, utility billing, food delivery, and more.
The new license means Musk is one step closer to achieving X’s goals. Twitter is gradually incorporating cryptocurrencies into its platform, adding ways for users to exchange tips with Bitcoin and allowing the use of non-fungible tokens. (NFT) as your profile picture.
Twitter was acquired by X Corp to ensure free speech and promote X for all apps. This isn’t just changing the company name, it’s doing the same thing.
The Twitter name made sense when messages of just 140 characters were being exchanged. for example…
— Elon Musk (@elonmusk) July 25, 2023
“In China, we basically use WeChat for our daily lives because it is very easy to use and useful in our daily lives. deaf,” Musk previously said. Said employee.
Upcoming Features of X Will Initially Only Support Payments in Fiat Currency, CoinTelegraph reportsaid, citing a person familiar with the matter. However, owner Musk has ordered developers to build Twitter’s payments system in a way that will support cryptocurrency integration in the future, the company said.
To date, X has obtained money transfer operator licenses in seven US states, including Michigan, Missouri, New Hampshire, Arizona, Georgia and Maryland, all of which were licensed in early July. Approved.
Users worried about scammers
Some have expressed concern over X’s plans to add cryptocurrency payments, citing the platform’s history of being used by scammers to deceive users. Scammers often use the face of an influential figure like Elon Musk to steal X from unsuspecting people.
“With millions of cryptocurrency scammers out there, what could be the problem?” Said One user responded to a tweet about X being licensed.
There are millions of cryptocurrency scammers here, so what could go wrong
— PPPGrifter_TheOcho (@PPP_TheOcho8) August 29, 2023
“Cryptocurrency bots will proliferate to even higher levels than we think.” warned @SixSigmaCapital.
Some worry that cryptocurrency integration may increase regulatory demands for those who prefer anonymity.
“Do you know that this brings KYC?” [know-your-customer] I just said to X…” Said @0xgordoco.
Several others are excited about the prospect, especially DOGE, a popular memecoin backed by Elon Musk. They believe that DOGE will be one of the digital assets added to X for payment.