On Wednesday (January 8), Dogecoin (DOGE) plunged more than 10% in a frenzy of selling, and the bullish trend of the Trump Trade dissipated. Billionaire Elon Musk said in a live broadcast that Twitter would not introduce Dogecoin in payments because it needed the corresponding license, overturning rumors earlier this week.
Trump will be sworn in on January 20, and the market is focused on the prospect of him fulfilling his pre-election promises to provide a more friendly regulatory environment for Bitcoin and cryptocurrencies and to establish a strategic reserve of Bitcoin. Musk has established a close relationship with Trump during this campaign and was appointed as the leader of the newly established Department of Government Efficiency (D.O.G.E.).
Musk's Twitter announced that it will implement Twitter payment functions this year, named X Money.
So far, Twitter has obtained Money Transmitter Licenses in 39 states in the U.S., and these registrations are associated with a company called X Payments LLC.
Well-known tech commentator Aaron revealed details of the Twitter code leak, suggesting that the payment function X Payments, which will be realized this year, may be launched without obtaining approval from all 50 state regulatory authorities.
Famous technology journalist Alex Finn stated: "X Payments will somehow support cryptocurrency... Cryptocurrency could be an important track for Twitter payments."
Meanwhile, if X Payments embraces cryptocurrency, it could drive the market up, similar to the market surge triggered by PayPal's adoption of cryptocurrency in 2021, which propelled Bitcoin's historic bull market. In addition, Musk's extensive interest in financial innovation, along with the fact that the government efficiency department he leads has the same acronym as Dogecoin, keeps Dogecoin firmly in the discussion.
But Musk, during the Twitter live testing, talked about topics related to Twitter payments and denied market rumors.
He stated: "Cryptocurrency will not be used in Twitter's payment service in the near future, as the corresponding licenses are needed, and we will now focus on fiat currency."
It is noteworthy that the cryptocurrency media BlockTempo verified the live video and found that Musk mainly talked about game mechanics, and no information regarding Twitter payments has been found.
Although the requirements for Money Transmitter Licenses and the privileges granted by these licenses vary between U.S. states, these licenses typically allow companies to send, receive, and transfer funds for customers on a national and international scale, and also permit foreign exchange, such as exchanging foreign currency for U.S. dollars, as well as issuing prepaid cards, which includes both fiat currency and cryptocurrency.
However, if the source is true, it indicates that Musk has not prioritized support for cryptocurrency.
After the news broke, in addition to facing negative pressure from the traditional market's better-than-expected U.S. JOLTS report and hawkish signals from Federal Reserve officials, Musk's denial of rumors also triggered a short-seller battle.
