Striving to evolve X (formerly Twitter) into a multifaceted community platform replete with diverse functionalities, the Elon Musk-led company has successfully secured the necessary authorization to function as a payment hub in the United States.
This action follows Grayscale’s victory on August 29 over the US Securities and Exchange Commission. Additionally, it follows the social network’s January 2022 approval of the use of NFTs as profile images.
As indicated by records on the Nationwide Multistate Licensing System (NMLS), X has obtained a Currency Transmitter License (CTL) on August 28th from the state of Rhode Island.
BREAKING: Twitter (X) receives a license to add crypto payments; May bring crypto sending and receiving capabilities to millions of users worldwide. pic.twitter.com/oYpVM0oEm7
— Coingraph | News (@CoingraphNews) August 29, 2023
Rhode Island, formally named the State of Rhode Island and Providence Plantations, is the tiniest among the 50 US states. Positioned on the East Coast in New England, it’s not an actual island, contrary to its name, and is about twice the size of Phoenix, Arizona.
‘Currency Transmitter License’ In A Nutshell
A CTL is typically required by companies that provide services such as cryptocurrency exchanges, digital wallet providers, and payment processors. It ensures that these businesses comply with relevant regulations and adhere to anti-money laundering (AML) and know-your-customer (KYC) procedures to prevent illicit financial activities.
This official approval empowers Twitter to deliver an array of services tightly connected to virtual assets. Within this scope, X is sanctioned to manage, transfer, and facilitate the exchange of digital assets on behalf of its expansive user base.
X, boasting nearly 450 million active users, is well-placed to incorporate cryptocurrency payments. This could transform how people use digital currencies for everyday financial interactions, thanks to Twitter’s broad user reach.
This development marks another step in a sequence of strategic maneuvers by the platform, following billionaire Elon Musk’s successful acquisition of the platform in October of the previous year.
The company’s progress is a major step, as they’re blending socializing and financial aspects to reshape digital platforms and their influence on people’s lives.
Elon Musk’s Connection To Crypto
Elon Musk started getting interested in cryptocurrencies like Bitcoin and Dogecoin around 2021, and he showed his support for them on Twitter. After he bought Twitter, he’s been trying to make the platform into a place where users can do a lot of different money-related things, and part of that is adding cryptocurrencies to the mix.
Musk’s biggest company, Tesla, is said to own around 10,725 Bitcoin as part of its assets. Dogecoin has garnered significant public endorsement from the tech mogul, a factor that typically exerts a direct favorable influence on the price of the meme coin.
The army of crypto fans ultimately expected X acquiring these licenses. Based on data by CoinMarketCap, the disclosure has had a minor impact on the Shiba-Inu-themed meme coin, which has seen a gain of over 5% over the past 24 hours.
The Rhode Island license is more than simply a legal requirement from the state; it’s a tactical decision that fits in with Elon Musk and Twitter-X’s overarching goals.
Given the regulatory scrutiny that usually follows such projects, the approval may also serve as a template for other social media organizations thinking about entering the crypto market.
Featured image from Getty Images
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