Elon Musk has reportedly given his engineers instructions to construct the Twitter platform’s payment system in a manner that would enable the addition of crypto capabilities in the future, although, it will initially support only fiat currencies.
According to two individuals familiar with Twitter’s intentions, the payments function would initially handle fiat currencies but will be designed to allow cryptocurrencies should the chance arise, the Financial Times reported on January 30.
As part of Eon Musk’s declared goal to turn Twitter into an “everything app,” Twitter has long hinted at introducing payments to the social media network.
However, it is yet unclear if these payments would use blockchain or cryptocurrency technology, despite the fact that the Twitter CEO sees cryptocurrency as playing a significant role on Twitter.
Images of “Twitter Coins,” a secret in-development digital asset to be used for payments and tipping on the site, were released in the first few days of December, stoking hopes among many that it would somehow include cryptocurrency.
To the community’s dismay, the most recent leaked photographs of the project from early January omitted any mention of cryptocurrencies or blockchain technology.
Last October, there were unconfirmed allegations that Twitter was developing a prototype wallet that would let cryptocurrency deposits and withdrawals. However, it seems that the payments system will continue to function only on fiat for the time being.
In order to implement payments on its platform, Twitter has started the process of applying for state-based regulatory licenses throughout the US. According to one of the insiders, the business anticipates finishing the U.S. license procedure in a year.
In order to handle payments, “Twitter Payments LLC” registered with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department in November.
Around the same time, during a Twitter Space event, Musk described his vision for the network, which included adding debit cards and enabling bank accounts to be linked to Twitter profiles.
According to one of the Financial Times’ sources, Twitter would aim to get regulatory permits abroad after the eventual granting of U.S. licenses.
