Elon Musk's new payment platform, X Money, has entered a limited external beta testing phase this week. Early screenshots reveal features including cashback on certain card purchases and a 6% annual percentage yield (APY) on user deposits. Notably, Hollywood actor William Shatner, famed for his role as Captain Kirk in Star Trek, was invited as a beta tester and shared details of the platform.
Deposits for X Money are held by Cross River Bank, a member of the Federal Deposit Insurance Corporation (FDIC), and are insured up to $250,000 per person. The beta also showcases a personalized metal debit card issued in partnership with Visa, featuring zero foreign transaction fees.
However, the rollout faces significant regulatory hurdles. While X holds money transmitter licenses in approximately 40 U.S. states and Washington, D.C., it lacks a license in New York. State lawmakers have urged the New York Department of Financial Services (NYDFS) to withhold approval until consumer protection assurances are met. NYDFS officials have raised specific concerns about the platform's ability to detect money laundering and terrorist financing, as well as the enforcement of safety measures like separate logins and two-factor authentication.
Further policy pressure emerged as U.S. Senator Richard Blumenthal wrote to Visa, citing X's reputation regarding scams and hate speech as a consumer protection risk. The broader regulatory focus remains on fraud controls, AML/KYC compliance, and data privacy.
Musk has positioned X Money as a cornerstone of his "everything app" vision for X, stating in February that it is "intended to be the place where all money is." The platform marks Musk's return to payments, having founded X.com, which later became PayPal. Despite Musk's known appreciation for Dogecoin (DOGE), there is no indication of cryptocurrency integration in the current X Money beta.
