X will replace banks next year, says Elon Musk
What's the story
Elon Musk revealed his plan to turn X into a comprehensive financial solution by the end of 2024, as revealed during his latest all-hands meeting with X employees.
Musk envisions a platform that would render traditional bank accounts unnecessary, emphasizing its remarkable power.
In simple terms, this means you won't require a bank account in the future, and all transactions could be conducted through X.
X CEO Linda Yaccarino also views this as a "full opportunity" in 2024.
Words
X wants to control your financial life
Musk intends X to be the hub of users' financial life, managing all aspects related to money and allowing direct transactions.
In the audio of the meeting obtained by The Verge, his words were "When I say payments, I actually mean someone's entire financial life. If it involves money. It'll be on our platform. Money or securities or whatever."
"So, it's not just like send $20 to my friend. I'm talking about, like, you won't need a bank account."
Details
Obtaining money transmission licenses
In order to provide financial services, X is currently in the process of obtaining money transmission licenses throughout the US.
During the employee call, Musk expressed his desire to secure the required licenses within "the next few months."
He has previously mentioned the idea of turning X into a financial center, offering high-yield money market accounts, debit cards, checks, and loan services, enabling users to "send money anywhere in the world instantly and in real-time."
More
Musk's inspiration from PayPal playbook
Musk's ambition to establish X as a financial hub is influenced by the PayPal playbook he co-wrote with David Sacks in July 2000.
He pointed out that after being acquired by eBay, PayPal not only neglected to execute the remaining items on the list but also removed crucial features.
Now, Musk's goal is to develop X into an "everything app," akin to Chinese super apps like WeChat, which grant access to shopping, transportation, and more.
Insights
Challenges and controversies surrounding Musk's ambition
Musk is facing considerable obstacles in making his vision for X a financial hub a reality.
Persuading people of the necessity for such a platform and earning their trust with their entire financial lives are significant challenges.
The concept has been met with mixed reactions; some are wary of entrusting their financial data to X or Musk, while others argue that introducing a WeChat-like service in the US and Europe would be difficult due to existing laws and regulations.