Shock leak reveals Elon Musk's 'mind-blowing' X plan to replace banks and PayPal

Details from an internal X all-hands call leaked to The Verge outline Elon Musk's plans to expand the platform's financial services arm to rival banks and PayPal, according to Forbes' coverage of the leak. Musk described the plan as 'mind-blowing' if it were not rolled out by the end of 2024.

'When I say payments, I actually mean someone's entire financial life,' Musk said on the call, per Forbes. 'If it involves money, it'll be on our platform. Money or securities or whatever,' he added, saying of the eventual product that 'you won't need a bank account.'

Musk also referenced the company's own history with the idea, saying, 'The X/PayPal product roadmap was written by myself and David Sacks actually in July of 2000' -- tying the current plan back to his co-founding role at PayPal's predecessor decades earlier, and noting that PayPal itself had abandoned many of the features originally envisioned.

How the plan was described

The call reportedly took place around the anniversary of Musk's takeover of the platform, according to Forbes' account of The Verge's reporting. X CEO Linda Yaccarino was also on the call and described the financial services expansion as a 'full opportunity' for 2024, per that reporting. Musk denied that X would launch its own cryptocurrency to rival Bitcoin or other coins, even as he discussed folding money market accounts, debit cards, checks, loan services and real-time global money transfers into the app -- part of a stated ambition to make X an 'everything app' along the lines of China's WeChat. The reporting also said X was in the process of acquiring money transmitter licenses across multiple US states, with Musk indicating the remaining licenses were expected 'within the next few months.'

Reaction in crypto circles

Forbes reported that the leak sparked speculation among crypto commentators about a potential 'critical mass' moment for Bitcoin and crypto prices, drawing comparisons to PayPal's 2020 integration of cryptocurrency. Investor Balaji Srinivasan was quoted calling the timing notable, saying it looked 'just in time for the sovereign debt crisis.' Coverage of the leak also flagged open challenges facing the plan, including building consumer trust with sensitive financial data and justifying the platform's necessity against established financial institutions. The precise scope of what would launch by the stated 2024 deadline was not fully detailed in the reporting reviewed.

US In News compiled this archived account from contemporaneous coverage by Forbes, citing reporting from The Verge. It restores a story originally published on this site in October 2023; figures are as reported at the time.