Elon Musk, famously known as the ‘Dogefather,’ received a significant boost when X (formerly Twitter) secured a cryptocurrency license in the United States, a development approved on August 28.
This development comes just one week after Elon Musk sent Dogecoin’s price on a rollercoaster ride with a tweet asserting that Twitter is a place for both ‘dog and Doge.’
X has now obtained the Rhode Island Currency Transmission License, a vital requirement for facilitating cryptocurrency trading activities within the state of Rhode Island. This license opens doors for X to potentially offer various cryptocurrency-related services on its platform. These services would enable X to store, transfer, and exchange Bitcoin and other digital assets on behalf of its users. Additionally, this license encompasses related service providers, such as wallets, payment processors, and exchanges.
The Rhode Island Department of Business Regulation has specified that anyone or any entity involved in managing virtual currency or conducting transactions with virtual currency on behalf of others must acquire a currency transfer license. This requirement extends to entities like cryptocurrency wallets, exchanges, and payment processors that hold custody of funds within wallets.
Twitter has been gradually moving towards the payments sector, expanding its presence in the cryptocurrency realm. Notably, Twitter has partnered with Strike, a prominent Bitcoin payment application, allowing users to send and receive Bitcoin tips with ease. The platform has also enabled the display of Bitcoin and Ethereum addresses within user profiles. Earlier this year, in April, Elon Musk changed Twitter’s iconic bird logo to the famous Doge meme.
Upon X obtaining the cryptocurrency license, Dogecoin’s price experienced an anticipated 5% increase around the time the news broke. However, it subsequently decreased by more than 1% the following day, closing at $0.065. Year-to-date, Dogecoin has seen a decline of nearly 7%. Nevertheless, the cryptocurrency token may witness an uptick in the coming months if ‘Dogefather’ Musk continues to promote and incorporate it for cryptocurrency payments on X.