Twitter’s new payments tool will initially handle just fiat currencies, but Elon Musk wants it to be constructed with the possibility of supporting crypto in the future.
Twitter CEO Elon Musk is said to have told his developers to design the platform’s payment mechanism in such a way that crypto capabilities may be added later.
According to a Financial Times article on Jan. 30, two people familiar with Twitter’s intentions stated that the payments function would initially handle fiat currencies but will be created to allow cryptocurrencies if the chance arises.
Twitter has long teased the addition of payments to the social media network, as part of Musk’s stated goal of making Twitter an “everything app.”
However, it is unclear whether these payments would use blockchain or crypto technology, although the Twitter CEO believes crypto will play a significant role on Twitter.
Images indicating “Twitter Coins” a secret in-development digital commodity to be used for payments and tipping on the site were released in early December, with many hoping it might integrate crypto in some manner.
However, the project’s more recent leaked photographs from early January included no mention of cryptocurrency or blockchain technology, much to the chagrin of the community.
Last October, unconfirmed claims circulated that Twitter was developing a wallet that would handle crypto deposits and withdrawals.
However, it looks like the payment system will continue to operate with solely fiat support for the time being.
To that end, Twitter has initiated the application process for state-based regulatory licenses across the United States, which would allow the platform to accept payments.
According to one of the individuals, the corporation expects the licensing procedure in the United States to be finished within a year.
“Twitter Payments LLC” registered with the United States Treasury Department’s Financial Crimes Enforcement Network (FinCEN) in November, allowing it to process payments.
Musk stated at a Twitter Space event around the same time that he envisioned bank accounts being linked to Twitter profiles, as well as the site being able to conduct money transactions.
According to one of the Financial Times’ sources, Twitter will seek worldwide regulatory authorization following the approval of the US licenses.