Elon Musk’s company, referred to as “X,” has successfully obtained a currency transmitter license in a US state, suggesting potential plans for the integration of cryptocurrency and fiat payment processing on the microblogging platform, formerly known as Twitter. This license empowers the company to facilitate the custody, transfer, and exchange of digital currencies. Elon Musk, who acquired X last year, envisions transforming it into a comprehensive “everything app.” The platform aims to encompass communication, content sharing, and potentially payment processing.
As reported by CoinTelegraph, X has secured a currency transmitter license in the state of Rhode Island. This license is a mandatory regulatory requirement for companies involved in money transfers within the United States.
Initial indications suggest that the payment feature on X might initially be limited to transactions in traditional fiat currencies. However, as the platform undergoes further enhancements, it could potentially expand to enable the exchange and transfer of cryptocurrencies.
The announcement had a positive impact on the cryptocurrency market, with the sector’s total valuation experiencing an overnight increase of four percent, reaching a total value of $1.09 trillion (approximately Rs 90,07,269 crore), as reported by CoinMarketCap.
Interestingly, Elon Musk’s preferred alternative cryptocurrency, Dogecoin, also saw a price surge of over three percent following this news, reaching a trading value of $0.066 (about Rs. 5.42). Despite the development, Musk himself has not shared any related updates on the license acquisition.
Noteworthy is the fact that Rhode Island is not the sole US state granting this money transmitter license to X. In the same vein, states like Michigan, Missouri, and New Hampshire, among others, have previously approved the license for X. Rhode Island now becomes the seventh state to do so, as outlined by CoinTelegraph’s report.