In an effort to improve the misgivings of the existing traditional finance platforms, Tesla (NASDAQ: TSLA) and Twitter (NYSE: TWTR) CEO Elon Musk is planning to introduce a more efficient financial system by converting Twitter into an ‘everything app’ that includes messaging, payments, and commerce, called ‘X.’
As it happens, Twitter is currently working on the software and regulatory checks that would, in time, allow payments through the platform, and a high-ranking Twitter employee, Esther Crawford, has reportedly started to map out the necessary architecture back in January.
‘Money is just information’
More recently, Musk spoke to CNBC’s David Faber about the plan to turn Twitter into an efficient financial system (among other things), arguing that his goal was not to disrupt the banking system for the sake of disrupting it, as he explained in a Twitter space streamed on May 17.
“If we’re gonna make a product that improves the quality of life of people, that they find more useful, then that’s great. What people see in PayPal is sort of like a halfway version of what it could be. So I think there’s a potential to create a more efficient financial system.”
As for the financial system today, he described it as “a heterogenous set of databases running on mainframes of COBOL (Common Business Oriented Language) that still engage in batch processing,” which he said was “very inefficient” as “things are still not real-time,” and believes that “a much more efficient homogeneous real-time data system” is possible.
Furthermore, according to Musk:
“Money is just information. But that’s not the only reason. It’s just a thing that would be, I think, poetic to fulfill ultimately the vision that I‘ve had for X over 23 years, and actually seeing that come to fruition would be nice.”
What does it mean for DOGE?
Interestingly, since Musk’s Twitter space interview went live, the price of Dogecoin (DOGE), one of his favorite cryptocurrencies, has started to increase, briefly trading above the $0.073 mark, as it gained 0.42% on the day, moving to reverse the losses of 0.74% in the last seven days and 21.84% across the month.
Notably, such a price reaction to the mere announcement of Twitter becoming a payment platform at a moment when many other crypto assets are trading in the red is a good indication of how DOGE might react when this plan actually becomes a reality.
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