Recent reports suggest that Elon Musk, the CEO of X, previously known as Twitter, is exploring the possibility of reshaping the platform into an updated version of PayPal. This envisioned payment system aims to offer users lower transaction costs compared to credit cards while also monetizing user information.
Rumors about the potential direction of X gained traction when Charles Gasparino, a correspondent at Fox Business News, revealed that Musk has been in discussions with influential Wall Street figures regarding the platform’s future trajectory. Sources familiar with the matter indicated that Musk seems inclined to introduce an innovative payment system that bears resemblance to a modernized iteration of PayPal. This strategic shift could potentially influence the prices of prominent cryptocurrencies like Bitcoin and Dogecoin, both of which have piqued Musk’s interest in the past.
Amidst the speculations, a Dogecoin graphic designer issued a warning to the cryptocurrency community, cautioning them about the potential emergence of scam tokens falsely associating themselves with X. Musk himself responded to the designer, clarifying that neither he nor X has any intentions of launching a cryptocurrency token. Furthermore, a report from crypto data firm Nansen shed light on the limited adoption of PayPal’s stablecoin, revealing that most of the stablecoin is held in wallets controlled by Paxos, the issuer of the stablecoin.
While the prospect of X transforming into a PayPal-like payment system initially generated anticipation for potential market shifts, the existing climate of regulatory uncertainties and the downward trajectory of Bitcoin prices have created a cautious market environment. The introduction of PayPal, a prominent player in the payment industry, into the stablecoin domain did not yield substantial changes in the market. Both Bitcoin and Ethereum have exhibited restrained price movements and low trading volumes in recent weeks.