Financial Times learned about Musk's plan to introduce crypto payments to Twitter
Amid a general daily decline in cryptocurrency prices, the Dogecoin exchange rate has traditionally reacted with growth to the report of the billionaire's actions
Ilon Musk said that the payment system Twitter is developing will be fiat, but built in a way to add cryptocurrencies later, writes the Financial Times, citing sources familiar with the matter. The journalists reported that the social network, acquired by the billionaire last year, is developing an embedded payment system and has begun applying for the necessary licenses in the United States.
The billionaire has previously called digital payments a critical area and part of his strategy to continue to attract users to Twitter. In late 2021, the social network added the ability to send donations in bitcoins using the Lighting Network. And in February 2022, the platform began supporting Ethereum addresses for its mobile donation service.
Twitter registered with the U.S. Treasury Department as a payment processor last November and is currently processing several necessary permits and hopes to complete the licensing process within a year, sources told the publication. After that, the company intends to get approvals from regulators in other countries.
The rate of the cryptocurrency Dogecoin (DOGE) supported by Musk reacted with growth to the statement of the head of Twitter. Despite a general decline in prices on the crypto market, the value of DOGE rose by 6.2% - from $0.088 to $0.0.94 during the last 24 hours. The coin's market capitalization exceeded $12.9 billion.
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The coin has been sensitive to Musk's statements and actions before. He completed his acquisition of Twitter at the end of October last year, and on the back of this news Dogecoin rate rose by 104% during the week, on October 30 the coin updated its maximum since April 2021 at $0.14. After a billionaire published a photo with a Shiba Inu dog in the beginning of November, the rate of DOGE jumped up by 26% in 24 hours.
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