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𝕏Ɖ Will Dominate Digital Finance
THIS Is Why 𝕏 Needs Dogecoin To Win The Digital Banking Arms Race
In Silicon Valley, a digital banking arms race is heating up.
Apple, Coinbase, PayPal are all making moves to modernize the financial system. Each is offering exciting new products that encourage people to ditch their traditional banks and keep their money online.
𝕏 will overtake them all. Believe it or not, its secret weapon is Dogecoin.
Let’s take a look at how 𝕏 can reinvent finance with an assist from the digital dog dollar.
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Last week, Linda Yaccarino appeared on CNBC for her first big interview since becoming CEO.
She predicted 𝕏 would become a revolutionary super-app: “it's going to change how we congregate, how we entertain, how we transact, all in one platform."
Elon has been making similar predictions for months.
In June, he said that if 𝕏 is done right, “over time it would become half of the global financial system.”
To reach that goal, 𝕏 will have to offer an alternative to legacy banking and payments infrastructure.
In recent days, we’ve caught a glimpse of what this might look like. This month, Elon has been teasing something called the 𝕏 Card.
The idea of a card linked to a digital bank traces back to 2000, when Elon’s original banking startup x.com issued a branded Visa card.
Last Wednesday, he highlighted a post about the new 𝕏 card suggesting that it would link with the social media platform for payments. On Saturday, 𝕏 received a money transmitter license from Georgia, the fifth state to approve the company for payments.
It’s worth speculating on how an 𝕏 Card 2.0 would be different from a standard credit/debit card.
One possibility is that that the 𝕏 card could include Dogecoin integration.
A useful comparison is the Coinbase Card, which is currently offered by the US’s leading crypto exchange.
The Coinbase Card connects to a Coinbase account, allowing users select which cryptocurrency they want to transact with.
When a purchase is made, Coinbase automatically converts cryptocurrency into dollars and makes the payment.
For this to happen with 𝕏, the platform has to first build Dogecoin wallet that allows people to hold a balance on the platform.
The 𝕏 Card 2.0 could then allow users to spend Doge anywhere that accepts credit/debit cards by using the same mechanism as Coinbase.
The ability to make everyday purchases using crypto—even at places that don’t explicitly accept it—is step toward re-inventing banking from the ground up with sound digital money.
Rather than replace the legacy financial system wholesale in one swoop, crypto is capable of plugging into existing infrastructure and gradually overtaking it.
Another thing to watch is if 𝕏 offers higher interest rates on savings accounts than traditional banks. It’d be cool if 𝕏 offers a Dogecoin savings account that allows people to earn interest if they hold Doge on the platform.
Earlier this year, Apple partnered with Goldman Sachs to roll out a 4.15% high-yield savings account for dollars.
The interest paid on Apple’s account is more than ten times greater than that offered by legacy banks. Users make purchases from their phones or with an Apple Card.
You gotta think Elon’s planning a similar offering to compete with Apple.
Apple and Coinbase aren’t the only tech giants making moves in digital finance. Last week, PayPal announced PayPal USD, its own blockchain version of the digital dollar.
PayPal resisted cryptocurrency integration for over a decade until it reversed course and enabled users to hold select cryptos on its platform in late 2021. Now, it looks like the company is going all-in on digital payments.
All these developments are another sign that banking is ripe for disruption. Legacy banks have the first-mover advantage, with trillions of dollars under management and a history of brand loyalty, but tech companies can offer newer and better services.
An advantage that 𝕏 has over all of these other platforms is that isn’t just an online bank—it’s also a social network.
The combination of digital payments and social media will allow money to flow in new and uncharted ways.
A great example from the last week is the story of Oliver Anthony, whose working-class ballad “Rich Men North of Richmond” went mega-viral in the span of a few days. Last Monday, Anthony was an unknown farmer posting his folk songs online. Today, he has 300k followers.
Traditionally, breakthrough musical artists go through the rigmarole of hiring an agent and negotiating a record deal before they get paid.
However, if each one of Anthony’s followers sent him just a dollar—or Dogecoin— tip on 𝕏, he’d instantly have funding to continue his work for years.
From an artist’s standpoint, social media crowd-funding has many advantages over the traditional route: instant payment, no middleman, and total creative control.
The big question is which new financial technology will artists like Anthony use to raise money.
PayPal, Coinbase, and Apple all allow money to be transmitted online. But only 𝕏 lets creatives manage social and financial aspects from the same platform, making it the best place both to display work and get paid for it.
No one wants to navigate away from social media to send a one-dollar tip over PayPal or Coinbase. But folks will definitely send tips on 𝕏 if it’s as easy as liking or commenting on a post.
Dogecoin tipping on 𝕏 will be a huge milestone in this regard. When users can easily reward quality content with one-click tipping, 𝕏 has a chance to become the best website for creators on the planet.
Ideally, 𝕏 will develop a tipping culture of abundance where users learn it is fun to give away digital dog money.
The more people use the platform to support and promote creative work, the larger the online creator’s economy will grow. Money normally spent on other platforms will migrate to 𝕏.
The digital finance arms race is underway.
Power players like Coinbase, Apple, and PayPal are all rolling out exciting new products that will change the way we move money online.
None, however, can match the social element of 𝕏 and the fun factor of Dogecoin.
In the battle to be your online bank, Dogecoin is the reason 𝕏 will win.
Dogey Treats: News Bites
Elon posted that the “Future is looking bright” after a product and design session with the 𝕏 team.
Cameron Winklevoss responded to a legal filing by Barry Silbert’s Digital Currency Group with a blistering critique.
Binance became the first fully licensed exchange in El Salvador.
𝕏 appears it will launch something called 𝕏 Music in the future.
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This article was written in collaboration with @CryptoDogDivine, give them a follow!
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Disclaimer: This is not financial advice and I am not a financial advisor. The article above references an opinion for entertainment purposes only and it is not investment advice. Always assume that the author of the article is actively trading and that the opinions expressed may be biased towards the author’s holdings. Do your own research and consult with a licensed financial adviser before making any investment decision. Do not treat any opinion expressed in this newsletter as a specific inducement to make a particular investment. Content, news, research, tools, and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or cryptocurrency or to engage in any particular investment strategy. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, cryptocurrency, or financial product does not guarantee future results or returns. Dogecoin is a speculative and highly volatile asset susceptible to pump-and-dump schemes.
At the time of publication, Dogecoin is around $0.08 per coin.