Elon Musk unveils new X DM feature XChat with “Bitcoin-style” security; stakeholders differ

Elon Musk has announced XChat, an innovative upgrade to X’s DM feature, boasting “Bitcoin-style encryption” for ultra-secure messaging. The X DM feature XChat will include video calls, self-destructing messages, and support for all file types, but crypto experts are already fact-checking Musk’s terminology.

XChat’s encryption sparks debate among Bitcoiners

Musk revealed that the X DM feature XChat is built on Rust, a programming language he claims enables “(Bitcoin style) encryption.” However, Bitcoin advocates quickly corrected him, noting that Bitcoin itself isn’t encrypted, it relies on elliptic curve cryptography for security.

“Bitcoin isn’t encrypted; it uses digital signatures,” clarified Samson Mow, CEO of JAN3.

Crypto influencer “Pledditor” echoed this, while Bitcoin core developer Luke Dashjr criticized Rust as “a bad idea for security.” Despite the backlash, the X DM feature XChat could still set a new standard for privacy in social media messaging.

How XChat plans to compete with Signal and Telegram

With end-to-end encryption and file-sharing capabilities, the X DM feature XChat positions X as a direct rival to encrypted platforms like Signal and Telegram. Early testers report the feature requires a four-digit passcode, hinting at layered security.

Musk’s vision for X goes beyond messaging. The X DM feature XChat is part of a broader “everything app” strategy, mirroring China’s WeChat. If successful, X could dominate both social networking and private communications.

X Money: The next phase of Musk’s fintech ambitions

Alongside XChat, Musk confirmed X Money, a payments system entering beta later this year. “When people’s savings are involved, extreme care must be taken,” he cautioned. This move pits X against Venmo and Cash App, further expanding its ecosystem.

Why “Bitcoin-style” encryption isn’t quite accurate

Bitcoin’s security relies on elliptic curve cryptography and SHA-256 hashing, not encryption. As BitMEX Research noted, Musk might have meant BIP-151 (a peer-to-peer encryption standard for Bitcoin nodes). Regardless, the X DM feature XChat could still offer robust protection if implemented correctly.

The future of X: More than just a social network?

Since acquiring Twitter in 2022, Musk has pushed X toward becoming an all-in-one platform. With the X DM feature XChat and X Money, he’s doubling down on privacy and finance, two areas where users demand innovation.

Will XChat outpace Telegram? Can X Money challenge Cash App? The industry wateches on.