Elon Musk’s license gives a company the right to facilitate the custody, transfer, and exchange of digital currencies. Musk, who acquired X last year, has said he wants to turn it into an “everything app.” The billionaire envisions the X as a platform that would allow users to communicate, share and also process payments in the future.
According to a CoinTelegraph report, X has acquired a currency transmitter license in Rhode Island. According to the report, the currency transmitter license is a legal requirement for money transfer companies in the United States.
Popular social media platform X (formerly Twitter) will introduce cryptocurrency payments to its nearly 450 million active users. X recently received a currency transmitter license from Rhode Island, allowing it to store, transmit and exchange digital assets. pic.twitter.com/EK8huDrSBy
— 0x.daVinci (:blue_heart:,:orange_heart:) (@0x_daVincii) August 30, 2023
It says that the payments feature on X may initially only allow payments in fiat currencies. In later expansion stages, however, the function could also enable the transfer and exchange of cryptocurrencies.
The crypto market reacted positively on Wednesday. According to CoinMarketCap, the valuation of the crypto sector rose four percent overnight to $1.09 trillion (approximately Rs. 90.07.269 crore).
Musk’s favorite altcoin — Dogecoin — was also up over three percent on the news, to trade at $0.066 (approximately Rs.5.42). Curiously, Musk himself hasn’t posted anything about the company acquiring the license.
It is noteworthy that Rhode Island is not the only US state to have granted this money transfer license to X. Earlier this year, Michigan, Missouri, and New Hampshire, among other U.S. states, also approved the license for X, making Rhode Island the seventh state to do so, according to the CoinTelegraph report.