On Wednesday (January 8), Dogecoin (DOGE) experienced a frenzied sell-off, plummeting over 10%, as the bullish trend of the Trump Trade faded. Billionaire Elon Musk stated in a live broadcast that Twitter will not introduce Dogecoin for payments due to the need for corresponding licenses, overturning rumors from earlier in the week.
Trump will be sworn in on January 20, with the market focused on his promise to provide a more cryptocurrency-friendly regulatory environment and establish a Bitcoin strategic reserve. During this election cycle, Musk has developed a close relationship with Trump and has been appointed as the leader of the newly established Department of Government Efficiency (D.O.G.E).
Musk's Twitter announced that it will launch the Twitter payment feature this year, named X Money.
So far, Twitter has obtained money transmitter service provider licenses in 39 states in the U.S., all registered under a company called X Payments LLC.
Prominent tech commentator Aaron revealed details of the Twitter code leak, suggesting that the payment feature X Payments, which is set to be implemented this year, may be launched without obtaining approval from all 50 state regulators.
Famous tech journalist Alex Finn stated: 'X Payments will somehow support cryptocurrency... Cryptocurrency could be an important avenue for Twitter payments.'
Meanwhile, if X Payments embraces cryptocurrency, it could drive the market to soar, similar to the market surge triggered by PayPal's adoption of cryptocurrency in 2021, which propelled Bitcoin's historic bull market. Furthermore, Musk's broad interest in financial innovation, combined with the fact that the abbreviation of the efficiency department he leads is the same as Dogecoin, gives Dogecoin a solid position in the discussion.
But Musk, during the Twitter live test, talked about topics related to Twitter payments and denied market rumors.
He said: 'Cryptocurrency will not be used in Twitter's payment services in the near future because the corresponding licenses are needed, and we will now focus on fiat currency.'
It is worth noting that cryptocurrency media BlockTempo verified the live broadcast video and found that Musk mainly explained game mechanics and did not discuss Twitter payments.
Although the requirements for money transmitter service provider licenses vary by state in the U.S., these licenses generally allow companies to send, receive, and transfer funds for customers on a national and international level, and also permit currency exchange, such as exchanging foreign currency for U.S. dollars, as well as issuing prepaid cards, which includes both fiat and cryptocurrencies in this definition.
However, if the source is true, it indicates that Musk has not prioritized support for cryptocurrency.
After the news broke, Dogecoin faced not only the negative pressure from the U.S. JOLTS exceeding expectations in the traditional market, as well as hawkish signals from Federal Reserve officials, but Musk's rumors also triggered a short-seller battle.
