What is X Money?

The Minister of Government Efficiency (DOGE) and Elon Musk, the owner of X platform, announced X Money digital wallet. X will use Visa Direct, Visa's real-time money transfer solution, in this new system.

What is X Money and how will it work?

X Money is expected to function as a versatile payment platform by potentially offering peer-to-peer transfers, e-commerce integration, and even cryptocurrency transactions. According to X CEO Linda Yaccarino, X Money is part of the company's broader strategy to connect users in ways that were previously thought impossible. This move aligns with Musk's longstanding interest in financial technology, harkening back to his role in founding PayPal.

Another milestone for the Everything App: @Visa is our first partner for the @XMoney Account, which will debut later this year.

💰Allows for secure + instant funding to your X Wallet via Visa Direct

🪪 Connects to your debit card allowing P2P payments

🏦 Option to instantly…

— Linda Yaccarino (@lindayaX) January 28, 2025

This is X's first concrete step to create a financial ecosystem for the social media site formerly known as Twitter, which Musk aimed to establish before acquiring it in 2022. At the time, Musk, who was also the CEO of Tesla, said that the $44 billion acquisition was a way to create an "everything app." He later said that the platform would allow users to conduct "all their financial worlds" on it.

Buying Twitter is an accelerant to creating X, the everything app

— Elon Musk (@elonmusk) October 4, 2022

In 2021, while Jack Dorsey was at the helm of Twitter, the company launched a Bitcoin tipping feature that allowed users to add their crypto wallet addresses and receive payments in the world's largest digital token. However, gaining status as a money services business in the U.S. required navigating a much more complex regulatory environment.

Musk has been applying for these licenses for X for more than a year. According to the website, X Payments LLC is licensed in 41 states and registered with the Financial Crimes Enforcement Network or FinCEN. The launch of X Money service is expected in the first quarter, and it is likely to make deals with more financial partners.

The role of cryptocurrencies in X Money

One of the most interesting aspects of X Money is its potential integration with cryptocurrencies. Known for its support for Dogecoin (DOGE), Musk has implied his interest in integrating digital assets into his projects on several occasions. In fact, Tesla, another of Musk's companies, accepts Dogecoin as a payment method for some of its products.

X Money Visa partnership

Visa is the first partner of the 'X Money' service planned to be launched later this year, according to Visa, which shared about the partnership. According to Visa, these services will be supported by Visa Direct, an instant money transfer service, and will be offered to users in the United States.

We’re excited to partner with @XMoney on the launch of X Money Account.

Visa Direct, US X Money Account users will be able to fund and transfer money in real-time with their debit card.

• Visa (@Visa) January 28, 2025

It is not yet known whether X Money will be offered to consumers in other countries and perhaps through additional payment partners in the near future. Also, a definite date for the US launch has not been announced yet.

This article does not contain investment advice or recommendation. Every investment and trading transaction involves risk, and readers should conduct their own research when making decisions.