The move by Rhode Island regulators comes mere weeks after X acquired money transmitter licenses in Michigan, Missouri, and New Hampshire.
Social media site X, formerly known as Twitter, has secured a license that would allow it to facilitate cryptocurrency payments and trading in the United States. According to Nationwide Multistate Licensing System data, the platform’s application for a Rhode Island Currency Transmitter license was approved on Monday, August 28.
Possession of the Rhode Island Currency Transmitter license provides businesses with the agency needed to control virtual currency on behalf of others. This places X in a position to provide crypto-linked services such as payments, trading and wallets for its users.
This move appears to be in line with X owner Elon Musk’s vision for X to serve as an “everything app.” While reports suggest that the app’s upcoming payments feature will only support fiat payments, sources say that Musk has instructed developers at the firm to design the payments system in such a way that support for crypto payments can be added in the future. Musk is a known supporter of cryptocurrency and has previously expressed support for cryptocurrencies such as Bitcoin and popular memecoin Dogecoin.
The move by Rhode Island regulators comes mere weeks after X acquired money transmitter licenses in Michigan, Missouri, and New Hampshire. As it stands, the platform has money transmitter licensure in seven states.
The app has proven “crypto-friendly” in the past with the addition of features such as the Bitcoin tipping feature made possible by a partnership with Bitcoin payment app Strike and support for non-fungible token (NFT) profile pictures. The addition of crypto payments to the widely-used app could be a major step in the adoption of cryptocurrency. It could also open up the platform to a new user base – one that is interested in the use of virtual currency – while providing X with a new revenue stream outside of advertising, which has taken a major hit in the past months.
Presently, it is unclear if and when crypto payments will be added to the app. If X does end up adding crypto-support, it will be interesting to see how other social media platforms respond as the move could well be a catalyst for the integration of crypto payment in mainstream social media.