Why Musk's Twitter Overhaul Has Far-reaching Impact on Cryptocurrencies

Author: Helene Braun, CoinDesk; Compiler: Songxue, Jinse Finance

Elon Musk’s decision to rebrand Twitter to X and make it an “everything app” could expand the use of Dogecoin (DOGE), Bitcoin (BTC) and other cryptocurrencies .

One expert said: “Incorporating cryptocurrency payments into the ecosystem would be an absolute game changer.”

** Elon Musk’s bold attempt to reinvent Twitter as a broader new service called X will apparently turn the iconic social media app into a payment platform. **

According to experts, the dream could have implications for cryptocurrencies, especially the billionaire favorite: Dogecoin (DOGE).

**Musk has long talked about creating a so-called everything app that would encompass not just social media and messaging, but the ability to buy stuff and send money. ** Given Musk’s long history of dabbling in digital assets, cryptocurrencies could easily be a factor.

His automaker, Tesla, holds bitcoin. He often talks about DOGE: “Dogecoin is probably my favorite cryptocurrency. This is so cool,” he tweeted in 2019. Earlier this year, Twitter’s logo was replaced with Dogecoin’s dog symbol within days, fueling Dogecoin’s massive (albeit temporary) rally. The token rallied sharply on Monday following the Twitter X rebrand.

“It’s almost part of a running joke that Elon is clearly interested in DOGE, but if he I wouldn’t be surprised if payments are actually enabled through DOGE.”

In January, the Financial Times reported that Musk had asked to build payment infrastructure at the company, initially for fiat currencies but later be able to add cryptocurrencies.

**Cryptocurrency will go mainstream? **

Despite the bull run that ended in 2021, cryptocurrencies never broke out of the mainstream. Musk has many detractors, so making payments in cryptocurrency on X is not guaranteed to drive cryptocurrency adoption. However, X (formerly known as Twitter) still has millions of users, so it can expand its use.

"I doubt he will integrate other crypto assets like Bitcoin, Ethereum, and stablecoins like USDC, but DOGE is part of Musk’s online business, and if he launches a crypto payment system on Twitter, he almost has to include DOGE function," Evans said.

Musk’s vision for a platform called X dates back to his time at PayPal, which got its name after it merged with Peter Thiel and Max Levchin’s company Confitinity. Before the merger, it was called X.com — the URL Musk now owns and redirects to twitter.com.

Twitter has obtained money-transmitting licenses in three U.S. states, allowing the company to receive and transfer money. States including Michigan, Missouri and New Hampshire are quietly developing their payment tools.

Phillip Shoemaker, executive director of Identity.com, a nonprofit that provides decentralized authentication, said: “** It’s clear that he’s very interested in turning a rebranded Twitter into a payments giant, so he’ll naturally explore making Encryption is incorporated into this functionality.****” “If done correctly, Twitter could become the platform of choice for payments in general, whether they involve regulated fintech applications or blockchains such as Ethereum and Solana.”**

Forays into the cryptocurrency space are nothing new for the app, which launched Bitcoin in September 2021 under former CEO Jack Dorsey in partnership with Jack Mallers-led payments startup Strike. Coin (BTC) tipping function.

Raluca Cherciu, co-founder and CEO of Unpaired. A game-changer.” Unpaired. is an online community dedicated to exploring how emerging technologies can facilitate real-world connections. “Not only does this resonate with the extremely active crypto community on Twitter, but it also echoes Musk’s fascination with the crypto space.”