Elon's X-tra Special Crypto Crossover

Moving as unpredictably as the crypto market, one can never foresee what Elon Musk will do next. This time, his revamped Twitter, X, has obtained a license to operate cryptocurrency wallet services across several US states.

Confirmed by the Nationwide Multistate Licensing System (NMLS), the approval comes after X applied for money transmitter licenses last month, and falls under Musk's vision of transforming X into more of a financial app.

Telegram made a similar move recently by implementing Bitcoin and USDT payments, whilst Coinbase wallet introduced encrypted decentralized messaging.

Likewise, X. As peer-to-peer payment technology, cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are known for being open, permissionless, and borderless payment systems. They’re also a point of casual interest for Elon Musk, who occasionally remarks about the industry and playfully tweets about his favorite cryptocurrency, Dogecoin (DOGE), on his platform.

But as always, Musk's new endeavour comes with added controversy. Whilst Musk has been known for his support of Dogecoin, his involvement appears to be much deeper than we thought.

A report by WSJ revealed that Musk and his brother Kimbal had dreamt up a social media platform that would allow people to send money to each other through the blockchain.

“A blockchain social media system that does both payments and short text messages like Twitter,” Elon said to his brother. According to the report, which takes information from an upcoming biography on the world's richest man, he then mentioned that “it could have a payment system using Dogecoin, the semi-serious cryptocurrency whose development he had been quietly funding.”

Musk has ruled out creating a token for his social media platform but it seems very likely that Doge will eventually be implemented on X, ultimately fulfilling his vision.

In 2021, Musk's vocal support of Doge sent the memecoin skyrocketing 26,000%.

If X was to incorporate Doge into the social media platform, the memecoin would likely see a resurgence once again.

In Elon we trust.

Elsewhere:

• Japan's Crypto Tax: Japan's Financial Services Agency (FSA) is seeking to reform taxes for crypto firms. Currently, companies in Japan are taxed on unrealized gains of their crypto holdings when the fiscal year ends. Critics of the system argue that it hinders innovation. The FSA seemingly agrees and has submitted legislation to eliminate the system. The Ministry of Economy, Trade, and Industry also support the reform whilst the Japan Blockchain Association (JBA) is urging the FSA to extend these reforms to crypto assets held by third parties.
• Binance's Exodus Continues: Binance’s head of product Mayur Kamat has left the building. Kamat, who joined Binance in March 2022, cited personal reasons for his resignation. “It is time for me to step down and transition product leadership to Binance’s next-gen leaders,” Kamat said. “It is also a good time for me personally to take some time off after 20 years of non-stop product work.” Kamat is now the fourth senior executive to leave Binance since July as the exchange faces increasing regulatory pressure.
• CBDC's Retail Requirement: Changchun Mu, the director of the Digital Currency Research Institute of the People's Bank of China, has stated that wallet providers must provide support for all retail payment scenarios when it comes to its CBDC. Mu emphasized that commercial banking apps like WeChat and Alipay must implement QR codes for the CBDC whilst focusing on long-term upgrades. CBDC payment option must also be integrated into existing interbank payment and settlement systems.
• Casio x Polygon: Casio is partnering with Polygon Labs to launch its virtual G-SHOCK watch on Polygon's protocols. Predictably, the project offers an NFT-based collection with community access passes. Distribution starts on September 23 through exclusive Discord channels. Casio will invite users to submit design ideas for the NFT pass. The winning design will become a variant of the pass.