Elon Musk, the CEO of Tesla, acquired the social media platform X (formerly Twitter) last year and has since been making significant changes to the app. He envisions X as a financial powerhouse, aiming to transform it into a banking alternative by the end of the year.
During a recent meeting with his employees, Musk stated that this transformation encompasses not just payments but someone’s entire financial life, including money and securities, making traditional bank accounts unnecessary. Musk’s ambitious goal is to make this a reality by the end of 2024, even though there is no concrete plan in place.
“When I say payments, I actually mean someone’s entire financial life,” The Verge quoted him as saying.
“If it involves money. It’ll be on our platform. Money or securities or whatever. So, it’s not just like send $20 to my friend. I’m talking about, like, you won’t need a bank account.” Musk expects it to become a reality by the end of 2024, however, there is nothing concrete on paper yet.
“It would blow my mind if we don’t have that rolled out by the end of next year,” Musk said.
X is actively pursuing money transmission licenses across the United States to offer financial services. They have already secured a currency transmitter license in Rhode Island, which is legally required for companies facilitating financial activities involving the sending and receiving of money, be it traditional currency or cryptocurrencies.
Elon Musk’s involvement in the financial technology sector is not new; he co-founded PayPal in the late 1990s, which later went public and was acquired by eBay for $1.5 billion.
Musk’s takeover of X has been met with intense scrutiny, as he has introduced various changes to the platform. Notably, X has launched long-anticipated audio and video calling features, signaling Musk’s desire to transform X into an all-encompassing app.
In line with this vision, Musk has introduced features like allowing only verified users to reply to posts and potentially implementing fees for new users to access basic features on X. This monetization strategy has already been rolled out in New Zealand and the Philippines, where new users are charged approximately $0.75 to $0.85 per year to post content, while users who opt not to pay can still view posts and watch videos.
In essence, Elon Musk’s acquisition of X has ushered in a period of transformation for the platform. He aims to turn it into a comprehensive financial and social media app, with the potential to disrupt traditional banking services and introduce new revenue streams for the platform through user fees and premium features.