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Elon Musk’s plans to enable money transfers on his social media network X have faced obstacles as New York regulators question the firm’s ability to detect terrorism and money laundering. According to a report from The Information, Musk aims to turn X into an ‘everything app’ and a ‘global town hall,’ but with his time split across multiple ventures, progress on money transfer plans has been slow and several years behind his original vision.
Elon Musk’s Attention Diverted Away From X Money To xAI, Says Report
Details from two sources shared with The Information reveal that Elon Musk is determined to launch X Money either nationwide or not at all. This difference in opinion arises because while the service has received approval in several states, it still lacks New York’s consent. Given its status as the world’s financial capital, New York enforces strict regulations on money transfers.
Regulators believe that X does not have enough staff to comply with stringent guidelines for money laundering and terrorism financing. Additionally, Musk does not want secure sign-in mechanisms like separate logins or two-factor authentication, but regulators argue these features are necessary to prevent fraud and abuse. These issues have led to a slowdown in progress at X Money, contributing to high staff turnover, making it unlikely that the service will launch soon.
Musk has shifted his focus to other areas, regularly sharing updates on his Grok AI chatbot and application on X. He also discussed X’s advertising strategy recently, noting that not a single product had been sold despite its large user base. High-profile departures at X Money include the CEO of its legal entity, compliance officers, and other staff, according to The Information.
In his recent update about X’s advertising, Musk expressed his desire to revolutionize ad experiences. He told advertisers that he wants “to change that completely to where you can even go on X and look forward to the ads, where you’re actually interested to see what ads show up because they’re going to be for products and services that you want.”
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