Social Media Giant X Secures US Remittance Licenses, But Virtual Currency Ambitions Stalled

Social media giant X has obtained remittance licenses in 22 US states but has not applied for a "virtual currency business license" required for virtual currency-related activities in certain states. As a result, X's "virtual currency payment" function, planned for launch with X Payments, may be postponed. Meanwhile, speculative buying has driven up the price of Dogecoin (DOGE) on expectations of its adoption as a payment option on X.

Social Media Giant X Obtains Remittance Licenses in Multiple US States, But Lacks Virtual Currency License in Key Jurisdictions

New York, United States - Amidst the company's expansion into the financial sector, social media behemoth X has secured remittance licenses in three additional US states: New Mexico, Oregon, and Illinois. With these latest acquisitions, X now holds licenses in 22 states, representing a significant portion of the US market.

However, X's pursuit of virtual currency-related activities appears to have hit a roadblock, as the company has yet to apply for the requisite "virtual currency business license" in certain states with stringent regulatory frameworks. Notably, states such as New York and Louisiana mandate such licensing for entities engaging in virtual currency operations.

New York's Stringent BitLicense System

New York's BitLicense system, implemented in 2015, is renowned for its stringent requirements and rigorous vetting process. Its strict regulatory oversight has drawn criticism from industry stakeholders, including New York City Mayor Eric Adams, who has advocated for its abolition.

Implications for X Payments

The absence of a virtual currency business license in key states could potentially delay the launch of X's anticipated "virtual currency payment" function, known as X Payments. Currently scheduled for release in mid-2024, the absence of the necessary licenses casts doubt on the timeline and availability of this feature.

Dogecoin Speculation and Elon Musk's Influence

Elon Musk, who recently acquired X, has expressed aspirations to transform it into an "everything app" offering comprehensive financial services. Musk's past endorsements of Dogecoin (DOGE) and his ability to influence its price through his social media presence have fueled speculation within the virtual currency community.

Dogecoin's Recent Performance

Dogecoin, a meme-inspired virtual currency, has experienced a surge in speculative buying activity in recent months. Its value has nearly doubled since February, coinciding with X's acquisition of remittance licenses. While some Dogecoin enthusiasts hold out hope for its adoption as a payment option on X, industry experts caution against premature expectations.

Community Sentiment

Within the Dogecoin community, opinions differ regarding the likelihood of X integrating Dogecoin. Mishaboar, a prominent Dogecoin developer, has expressed skepticism about its adoption as a payment method before 2025. Some experts believe X will prioritize legal tender payments, with the potential for virtual currency integration later on. Partnerships with exchanges and brokers are also considered viable options.

As X continues to navigate the regulatory landscape and expand its financial offerings, the company's approach to virtual currency licensing and the potential adoption of Dogecoin will remain under close scrutiny by industry observers and the broader virtual currency ecosystem.