Rhode Island regulators have granted a currency transmitter license to X, formerly known as Twitter. This approval is a significant step for the company’s expansion into the financial and crypto sector.
A currency transmitter license is essential for companies involved in financial transactions on behalf of users. The license includes both fiat and crypto transactions. With this license, X can now legally custody, transfer, and exchange digital currencies.
Rhode Island’s definition said: “Licensure is required for “maintaining control of virtual currency or transactions in virtual currency” “on behalf of others.”
This definition means the license is required for cryptocurrency wallets and exchanges, as they both handle assets on behalf of their users.
The license is also needed to offer traditional finance services. Rhode Island’s definition lists Western Union and Paypal as examples.
The social media app also has transmitter licenses in Michigan, Missouri, and New Hampshire.
While X’s upcoming payment feature will support fiat currencies initially, there are reports Elon Musk has directed the development team at X to design the system with potential crypto functionality in the future.
X’s transition to an “Everything App”
Elon Musk’s vision for X is to transform it into an “everything app”, integrating various different functions. Musk has previously said he was inspired by WeChat, which supports messaging, gaming, calling, and payment services.
One of the primary features expected on the new X app is said to be a payment hub processor.
Fox Business Network correspondent Charles Gasparino, posted on X that Musk is having conversations with top Wall Street executives over the social media app’s future.
“Seems to be settling, they tell me, on a new fangled payment system, updated version of PayPal. It will offer low transactions costs (as opposed to credit cards) & monetize user info,” he said
Details about the exact financial services X will provide are still unclear. However, sources close to the company suggest that X will start with fiat currency transaction services, similar to PayPal, according to CoinTelegraph. The platform is also being designed to accommodate cryptocurrency integration in the future.
X’s Licensing Progress in the US
The Rhode Island license is the latest in a series of approvals for X. The company previously secured money transmitter licenses in Michigan, Missouri, and New Hampshire, all of which were approved on July 5.
To date, X has obtained transmitter licenses in seven U.S. states.
X has applied for licenses in all 50 U.S. states. But, the timeline for the approval process in the remaining states is still uncertain.
Once X gains all of these US licenses, the social media app would seek to gain regulatory approval internationally, according to a Financial Times source.
Elon dismisses X coin rumours
There were previously rumours that Musk would release an X cryptocurrency to accompany the social media app. But these were denied by the billionaire earlier this month.
Musk said there were no plans to launch a cryptocurrency. The response comes amid scam tokens falsely claiming to be the official crypto of the social media platform.
The X owner has also recently denied rumours of plans to implement a trading platform into the app. There were reports that Musk was searching for a financial-data giant to create a trading hub on X.
However, Musk said: “No work is being done on this to the best of my knowledge.”
