Elon Musk’s vision for X: Will It Replace Your Bank by 2024?
The plans set forth by Elon Musk as part of his vision for X include ambitious projects such as ending the idea of traditional banking in as soon as 2024. As revealed in an all-hands meeting, this is a plan by Elon Musk to replace all other conventional banks with X-to-handle all aspects of one’s financial life-as being the one-stop shop of every transaction that starts as savings and ends up with securities. “…it would blow my mind if we don’t have that rolled out by the end of next year,” Musk declared, expressing his confidence in the fact that this aggressive step is well within the realm of possibility.
Plan for Financial Supremacy
Musk’s idea for X is much larger than just a simple exchange. He wants X to offer all financial services – from money transfers to equities and more. It’s not like sending $20 to a friend, though, he explained, speaking about the plan. He said this is actually reconsidering the banking experience all together. “If it involves money, it’ll be on our platform. Money or securities or whatever. So, it’s not just like ‘send $20 to my friend,'” Musk explained, adding that the platform’s very ambitious goal is to be a financial hub.
This vision will draw on the model similar to China’s WeChat, which can be referred to as the “super app,” handling all tasks, financial transactions, shopping, and transportation in one place. The whole concept of creating an “everything app” will have its foundation in his former financial tech experience, most particularly what he established with X.com in the early 2000s. This would eventually evolve to become PayPal.
Competing against PayPal: Using Musk’s own blueprint
Musk is going to borrow some pages from his earlier book in order to make X a financial powerhouse. He and David Sacks, co-creators of the X.com idea, originally wrote a roadmap back in 2000 for PayPal as a multi-purpose financial platform. Much of this vision went unrealized, however, when eBay bought PayPal, Musk says. During the recent X call, he said PayPal’s feature set today is “less complete” than what he and his team envisioned over two decades ago. He is determined not to let history repeat itself with X.
X as a Full-Fledged Financial Platform by 2024
Acquiring financial licenses in all US states, Musk’s master plan involves. X, thereafter, will become competent enough to offer financial services nationwide. Although some of the financial licenses X had acquired previously, during its announcement to the company staff, Musk said that this year, he would procure all remaining approval. Thus, pretty soon it becomes practical enough that X might start offering high yield saving account, debit card, cheque, and maybe loan, as well.
During the all-hands call, CEO Linda Yaccarino repeated what Musk said, which was that the company is “all-in” on the goal of making X a one-stop financial platform by the end of 2024. Yaccarino added that “It would blow my mind if we don’t have that rolled out by the end of next year,” further affirms Musk’s optimism about that financial change.
Transforming X into an “Everything App
X should be more than a banking platform, because Musk’s vision is not only in banking but on a full-fledged life integration with the user base, kind of like China’s WeChat. Now, WeChat is almost a part of every life in China, where they can buy groceries, or process a payment, just to mention a few aspects. Therefore, Musk considers X an opportunity to find a way into Western markets, as there is not yet something like that – all-around platforms.
This aggressive shift philosophically represents an aggressive step for X, shifting away from the social media model to a digital infrastructure model. To users, it would mean that X would manage all financial transactions- be it day-to-day financial activities and international transfer of money. As per Musk, the service is to be offered in real-time. This is indeed an aggressive step, but then Musk’s credentials for innovating and pioneering technology should lend sufficient credence to the vision of such aggressive ambition.
Possible Obstacles: Trust and Adoption
The effort by Musk to revolutionize the finance sector by using X will face great resistance. Trust needs to be built in a new financial platform, especially a new one coming from a platform known for its role in social media. Unlike traditional banks, it would have to prove users that it could handle their financial information and assets without any danger.
Furthermore, X has to remove the public fear of privacy and reliability when it will come to pass as a financial hub. With breaches and hacking incidences being so rampant currently, people are likely going to feel like their details will not be safe here. Well, Musk doesn’t seem so worried for he feels the capabilities as well as experience of its users will have enough room to make some noise without his interference.
Can X Replace Banks?
Nothing might be as bold on social media as Elon Musk’s idea of surpassing old systems and institutions through a banking system. He’s been launching this revolutionary vision into the world as another new wave in finance across the tech-innovation frontier. A few years hence, the use of X might revolutionize peoples’ relations with their money in ways that change this means of transacting and saving for something else to receiving more of everything within their reach.
Whether or not he will deliver on his promise of X replacing banks by 2024 remains to be seen. But based on what he has shown in the past, one would imagine that the landscape will be quite different in another year from now due to his latest bold effort.
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