The social media platform X (formerly Twitter) has obtained a “money transmission license” from Rhode Island that will allow it to use Bitcoin and cryptocurrencies for payments on its platform.
On August 28, X was granted a Rhode Island currency transmitter license by the Rhode Island Department of Business Regulation, and it is the first of its kind for a significant technological company.
With the newly acquired license, X can now incorporate cryptocurrency wallets, Bitcoin payments, and other related services into its apps and offerings. While Bitcoin tipping for content creators was introduced last year, this license paves the way for a more comprehensive range of crypto payment options to be integrated into Twitter’s new premium subscription products.
To comply with the license requirements, X will be required to maintain reserves to cover their cryptocurrency holdings. Additionally, the license enables the company to conduct digital payments and money transfers, moving away from reliance solely on traditional financial systems.
Industry experts perceive this license as a significant step toward wider acceptance and adoption of cryptocurrencies for payments. Although the license allows for crypto services within Rhode Island, broader adoption across the United States still faces regulatory challenges at the federal level.
Nevertheless, this license places X at the forefront of integrating digital assets into social media platforms. By exploring other Web3 technologies like NFT profile pictures, X is poised to introduce a new generation of digital features on its influential communication network, thanks to the Rhode Island license.
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