Seven months ago, when Elon Musk took over Twitter, he stated that he would be incorporating cryptocurrency payments before he purchased the massive social media firm. According to sources, a group has now been tasked with building the infrastructure for a payment platform.
Elon Musk’s Payment Vision for Twitter Starting to Take Shape, Cryptocurrency May Follow
Elon Musk’s plan to integrate a payment system into the underlying structure of Twitter appear to be moving forward. According to Financial Times (FT) sources, Musk’s lieutenant, Esther Crawford, has built a small team. Musk previously revealed his intention to introduce a payment system back in mid-June of 2022. The current owner of Twitter discussed the incorporation of cryptocurrency.
“I think it would make sense to integrate payments into Twitter so that it’s easy to send money back and forth, and fiat and crypto, essentially whatever someone finds useful,” Musk stated during the first meeting with Twitter staff.
Sources speaking to FT on January 30th, 2023, reported that Twitter is also searching for state licenses and regulatory registrations. It is a well known fact that Twitter has started to allow the use of money licenses in a number of states. FT additionally states that Musk has appointed Crawford as the CEO role for Twitter Payments. According to FT sources, the payment system will initially handle fiat currencies with plans to add cryptocurrencies later.
Before Musk took over Twitter, former CEO Jack Dorsey launched a crypto tipping system and NFT options in 2021. In April 2022, Twitter collaborated with payments giant Stripe for a crypto funds pilot project. In November 2022, Bitcoin.com News reported that Twitter had registered with the US Financial Crimes Enforcement Network (FinCEN) to legally route funds. During a Twitter Spaces audio podcast, Musk said he could see Twitter offering cash market accounts and debit cards.
However, senior equity analyst and payments specialist Lisa Ellis from MoffettNathanson LLC told FT about the regulatory hurdles companies face when becoming payment firms. Many have to give up after making initial attempts. “Many [tech companies] experiment and then quit,” Ellis said. “They view the long-term investment and risk, with potential fines for violations and the need for a continuous licensed compliance infrastructure, as a burden.”
What do you think about Elon Musk’s creative and imaginative approach to integrating payments into Twitter? Do you think it will succeed? Share your thoughts on this topic in the comments section below.
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