X Business First Obtains License, Musk May Bring New Variables to the Cryptocurrency World

According to data from the National Multistate Licensing System (NMLS) website, X (formerly Twitter)'s subsidiary Twitter Payments LLC obtained a Currency Transmitter license in Rhode Island, USA on August 28. This marks a crucial step towards Elon Musk's goal of turning X into a versatile "Everything App." This article by veDAO will analyze the significance of this news and the potential impact it may have on X and the cryptocurrency industry.

Significance of Currency Transmitter License

The granting of the "Currency Transmitter" license to X by the Rhode Island regulatory agency involves the transfer and receipt of financial funds, applicable to fiat currency (USD, EUR, etc.) and cryptocurrencies (Bitcoin, Ethereum, etc.).

One of the steps to become a payment center or cryptocurrency payment service provider in the United States is to obtain the necessary licenses for legal operations. X has been gradually doing so in different states (including Arizona, Missouri, Georgia, Maryland, Michigan, New Hampshire, and now Rhode Island), mainly focusing on statutory payments under the "Money Transfer License." However, the "Currency Transmitter" license will now allow X to become a provider of cryptocurrency-related services, such as cryptocurrency exchanges, wallets, and payment programs. Specifically, this license will enable X to store, custody, and exchange digital currencies on behalf of its millions of users.

The acquisition of the currency transmitter license by X is of significant importance to both itself and the entire cryptocurrency industry. This represents X's move towards compliant operations in the cryptocurrency business, helping to enhance trust among users and regulatory agencies. Of course, X still needs to establish a sound anti-money laundering and risk control mechanism to protect the security of users' digital assets. At the same time, X's involvement is expected to increase the awareness and acceptance of cryptocurrencies among the Web2 community, helping to promote wider acceptance and attention to the cryptocurrency world. This news also confirms that X will have a deeper involvement in the cryptocurrency field, potentially collaborating with more Web3 projects to jointly build a cryptocurrency ecosystem and create more application scenarios, thereby promoting the development of the cryptocurrency industry.

As Elon Musk has always been a prominent supporter of the cryptocurrency community, it is possible that he will further drive the development of cryptocurrency technology and markets through the X platform. Elon Musk has previously stated that X will be friendly to cryptocurrencies, especially Dogecoin, and may integrate Dogecoin into the X payment system in the future. The former Twitter has formed a dedicated team to advance the "Twitter Crypto" project, responsible for cryptocurrency payments and infrastructure development. X has also collaborated with cryptocurrency companies for the development of cryptocurrency features, such as partnering with Strike for Bitcoin tipping functionality and collaborating with eToro to enable users to trade cryptocurrencies, stocks, and other financial assets.

Finally, the news of Twitter Payments LLC obtaining these licenses has injected a boost of confidence into meme coin enthusiasts: this news has subtly impacted meme coins with a Shiba Inu theme, as according to Coinmarketcap data, Dogecoin rose by 6% in price from the 28th to the 29th.

What Cryptocurrency Applications Might X Introduce?

While X is dedicated to obtaining compliant qualifications and building cryptocurrency capabilities, Elon Musk has also explicitly stated that X will not issue its own tokens. However, aside from issuing its own tokens, what cryptocurrency-related applications might X introduce?

Support for Major Cryptocurrencies

X can directly support mainstream cryptocurrencies such as BTC, ETH, etc., for platform payment services and creator rewards. This will also become a channel for cryptocurrency popularization, or an important gateway for Web2 users to enter Web3 and the platform.

Integration of Cryptocurrency Wallets

X may consider integrating with third-party cryptocurrency wallets, allowing users to manage cryptocurrency assets directly through X and facilitate asset transfers between different wallets.

Conducting Decentralized Trading

Integration with DEX to allow users to directly trade cryptocurrency assets on X.

Introduction of Unique NFTs

If X were to promote NFTs, there may be three ways to do so: introducing NFT functionality, establishing a creator economy by protecting creators through NFTs and enabling direct purchases of their works; an NFT trading market; X may also introduce its own NFTs on the platform, building a platform-exclusive digital asset economy, while combining smart contracts for permission control, etc.

Web3 Social Applications

Integrating SocialFi functionality to connect decentralized social applications. Users can link external wallets, manage digital identities and virtual assets across platforms. X may also bridge blockchain identity systems, support decentralized social applications, and achieve controllable and portable user identities and credentials.

Fully Embracing Web3? Continued Observation of X's Subsequent Deployments

The acquisition of the currency transmitter license in Rhode Island is just the first step for X to build its cryptocurrency payment capabilities. This opens a door for X in the cryptocurrency field, but its specific applications and scale still require further observation.

X still needs to obtain renewals of licenses from more states to fully carry out compliant cryptocurrency operations. Additionally, X has not yet applied for the crucial BitLicense established by the New York State Department of Financial Services (NYSDFS) and the EMI license in Europe. These will be crucial measures of the scale of X's cryptocurrency business.

Before launching actual cryptocurrency applications, X needs to conduct comprehensive risk assessments and community testing to ensure a smooth transition of the overall business; and collaborate with authoritative security and compliance institutions in the industry to ensure platform and asset security.

Most importantly, regulatory policies and user acceptance will greatly influence the effectiveness of X's cryptocurrency business, so X will likely adopt a gradual and cautious strategy rather than fully launching cryptocurrency-related features.

Conclusion

In summary, the approval of this license opens the door for X to advance its cryptocurrency business at a legal level. This is not only a new beginning but also the start of long-term work. Before implementing actual cryptocurrency applications, X still needs to do a lot of preparation and regulatory coordination. We have reason to remain optimistic and hopeful about X becoming an important player in the cryptocurrency ecosystem.

*Source: https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/2404946

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