Why is Musk’s Twitter reform said to have a profound impact on cryptocurrencies?

Why does Musk's Twitter reform have a significant impact on cryptocurrencies?

Author: Helene Braun, CoinDesk; Translation: Song Xue, LianGuai

Elon Musk has decided to rename Twitter to X and turn it into an “everything app,” with the aim of expanding the use of Dogecoin (DOGE), Bitcoin (BTC), and other cryptocurrencies.

An expert said, “Incorporating cryptocurrency payments into this ecosystem will definitely change the game.”

Elon Musk is boldly attempting to reshape Twitter into a broader new service called X, effectively turning this iconic social media app into a payment platform.

According to experts, this move could have an impact on cryptocurrencies, especially the one billionaire seems to favor: Dogecoin (DOGE).

Musk has long talked about creating what he calls an “everything app,” which includes not only social media and messaging, but also the ability to buy things and make transfers. Given Musk’s longstanding involvement with digital assets, cryptocurrencies could easily become a factor in this.

His car manufacturing company, Tesla, holds Bitcoin. He has frequently talked about DOGE, saying, “Dogecoin might be my favorite cryptocurrency. It’s pretty cool,” in a tweet from 2019. Earlier this year, Twitter’s logo was temporarily replaced with the dog symbol of Dogecoin, leading to a significant surge in the cryptocurrency’s value. After the rebranding of Twitter to X, the token saw a substantial increase on Monday.

Brian D. Evans, CEO and founder of BDE Ventures, said, “It’s clear that Elon is interested in DOGE, which is almost part of a long-running joke, but I wouldn’t be surprised if he actually implements payments through DOGE.”

In January, the Financial Times reported that Musk had requested the establishment of payment infrastructure within his company, initially for fiat currency but later with the ability to add cryptocurrencies.

Will cryptocurrencies go mainstream?

Although cryptocurrencies have never truly gone mainstream even during the bull market that ended in 2021, Musk has many critics, so using cryptocurrencies for payments on X (formerly Twitter) does not guarantee widespread adoption. However, X (formerly Twitter) still has millions of users, so it has the potential to expand the usage.

“I doubt he would integrate Bitcoin, Ethereum, and other cryptocurrencies as well as stablecoins like USDC, but DOGE is part of Musk’s online presence, so if he launches a crypto payment system on Twitter, he almost has to include DOGE functionality,” said Evans.

Musk’s vision for the platform called X can be traced back to when he worked at LianGuai, which became the name after a merger with Peter Thiel and Max Levchin’s company Confinity. Before the merger, it was known as X.com—the URL that Musk still owns and redirects to twitter.com.

Twitter has obtained money transfer licenses in three states in the United States, allowing the company to receive and transfer funds. States such as Michigan, Missouri, and New Hampshire are quietly developing their payment tools.

Phillip Shoemaker, Executive Director of the non-profit organization Identity.com, which provides decentralized identity verification, said: “It is clear that he is very interested in turning the rebranded Twitter into a payment giant, so he will naturally explore incorporating encryption technology into this function.If done correctly, Twitter could become the preferred platform for general payments, whether they involve regulated fintech applications or blockchains such as Ethereum and Solana.

For this application, entering the cryptocurrency field is not something new. The application has collaborated with Strike, a payment startup led by Jack Mallers, in September 2021, and launched the Bitcoin (BTC) tipping feature under the leadership of former CEO Jack Dorsey.

Raluca Cherciu, co-founder and CEO of UnLianGuaiired., said: “If we consider Musk’s vision of creating a universal application, incorporating cryptocurrency payments into the ecosystem will definitely change the game.” UnLianGuaiired. is an online community dedicated to exploring how emerging technologies promote connections in the real world. “This not only resonates with the extremely active crypto community on Twitter, but also echoes Musk’s fascination with the crypto field.”

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