Stripe and Crypto Payments on Twitter

A rumor was spread yesterday that Twitter might be ready to launch a new feature, called Coins, in partnership with Stripe: could it mark the entry of cryptocurrencies into the social network?

The new Twitter Coins would not be a cryptocurrency, but simply vouchers that can be sent as gifts to creators, who in turn can redeem them for fiat currency via Stripe.

Crypto, Stripe and Twitter

In July of last year, Stripe officially announced the start of testing with Chirping to introduce payments in cryptocurrencies.

At the time, the reins of Twitter had not yet been taken Elon Musk, which has since suspended many of the tests that were underway. So it’s possible Stripe’s tests were also broken.

The fact is, however, that Twitter already uses Stripe Connect to pay creators, so the test was only aimed at adding cryptocurrencies to the already existing and integrated means of payment within the platform of the famous social network.

Thanks to Stripe Connect, Twitter creators could also cash out their cryptocurrency earnings on their non-custodial wallets.

Therefore, some features of Stripe are already integrated into Twitter, and cryptocurrency payments may be added to these by Stripe in the future.

Furthermore, the company also said that initial support will only be for payments in USDC, which is one of the most regulated stablecoins in the world among those pegged to the US dollar.

Also, they specified it crypto payments would be made via the Polygon network, in order to take advantage of the low transaction costs, with the option for creators to switch to the Ethereum network once they receive the tokens.

At this point, it’s entirely safe to assume that Stripe is the technical partner with whom Twitter will handle transactions for any new Coins feature.

Twitter coins

The coins that could be brought into Twitter are not cryptocurrencies at all.

Many believed that Elon Musk would introduce the use of Dogecoin within the platform, but apparently he instead opted for a more “traditional” solution.

In fact, the coins will be nothing more than transactions within the Twitter platform, which can be bought and sold in fiat currency via Stripe.

At the moment, not only has this feature not been added yet, but apparently it hasn’t even been definitively decided whether to add it or not. In other words, at the moment, as far as is known, it is simply being tested.

Should it be released with the features known to date, it will give users the opportunity to buy coins by paying with Stripe, and then spend them within the platform by sending them to the creators.

The same creators, once they receive the coins, will be able to redeem them in fiat currency through Stripe.

However, if Stripe were to actually add payments in cryptocurrencies, then Twitter Coins could be bought and sold in cryptocurrencies as well.

Dogecoins

When it was announced that Elon Musk would take over Twitter in late October 2022, DOGE’s market value skyrocketed within days from $0.06 to $0.14, meaning it more than doubled.

But then it soon turned out that Musk had no plans to integrate Dogecoin into Twitter anytime soon, and with FTX going bankrupt, Dogecoin’s price plummeted back to $0.07 within days.

Subsequently, after a couple of rebounds still caused by the possibility of Twitter integration, the price even dropped below $0.07, to then return well above in recent days.

Therefore, the current price is well above the $0.06 in October, but remains -89% from the all-time highs of May 2021, when Elon Musk attended Saturday Night Live as Dogefather.

It is worth noting that DOGE price also fell to $0.05 in June 2022, so current levels are well above the bottom of this cycle.

The future of Twitter and crypto payments with Stripe

There is no doubt that, as Musk himself confirmed, Twitter’s future also involves payments, and it is unthinkable that somehow the platform does not end up integrating crypto payments as well.

For now, however, it seems very likely that it will not do so by integrating native payment functions internally, but by relying on external platforms such as Stripe.

On the other hand, for Twitter to develop an internal payments platform from scratch right now would be too risky and expensive, so relying on Stripe would give more immediate and economic benefits, and with enormously lower levels of risk.

It should not be forgotten that Stripe was founded in 2011, so it has been successfully operating in the markets for a dozen years.

By the way, Stripe was founded as a competitor to PayPal, which is a company co-founded by Musk himself that is now a public company with no single owner. Also among the first investors in Stripe in 2011 was fellow PayPal co-founder Peter Thiel.

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