Elon Musk launches XChat with ‘Bitcoin-style encryption’ amid crypto debate

XChat's encrypted messaging under the spotlight as crypto experts question Elon Musk's 'Bitcoin-style' approach.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Elon Musk has announced a novel update to X, the social media platform formerly known as Twitter. A new feature, called XChat, is now rolling out, offering private messaging secured by what Musk calls “Bitcoin-style encryption.”

He stated:

“All new XChat is rolling out with encryption, vanishing messages and the ability to send any kind of file. Also, audio/video calling.”

XChat replaces the platform’s standard direct messaging with a more advanced system. It supports end-to-end encryption, disappearing messages, and sending various file types.

At the same time, users can initiate voice and video calls without linking a phone number. This would be designed to work across devices and operating systems.

Musk described XChat as a complete rebuild, developed using the Rust programming language. He emphasized that the encryption model borrows from concepts used in Bitcoin’s architecture, though he did not offer technical details.

The move reflects Musk’s ambition to transform X into a multi-purpose platform that combines social networking, communications, and financial services.

Last month, Musk confirmed that X would soon roll out a payments service in beta mode. He said:

“This will be a very limited access beta at first. When people’s saving are involved, extreme care must be taken.”

This builds on X CEO Linda Yaccarino’s earlier statement that X Money, a digital wallet service, is expected later this year. The platform is partnering with Visa, allowing users to connect debit cards, send funds, and conduct peer-to-peer payments directly within the app.

Crypto community split over ‘Bitcoin-Style’ encryption

Musk’s reference to “Bitcoin-style encryption” has stirred debate in the crypto space, with some developers arguing that the phrase is misleading.

Bitcoin Core developer Luke Dashjr pushed back, stating that Bitcoin itself doesn’t use encryption and criticized the choice of Rust for security-critical components. He noted:

“Bitcoin doesn’t even use encryption.. Also Rust is woke.”

On the other hand, BitMEX Research suggested Musk may be referencing BIP-151, a proposal to encrypt data exchanged between Bitcoin nodes.

Meanwhile, Wei Dai of 1kx speculated that the reference could relate to Bitcoin’s peer-to-peer communication design. He said:

“‘Bitcoin style’ ~= ‘Peer-to-peer’ ~= ‘end-to-end.’ So ‘Bitcoin style encryption’ means ‘end-to-end encryption.'”

Other experts pointed to Elliptic Curve Cryptography (ECC), a mathematical method used in Bitcoin to generate and manage private keys, as a possible explanation.

Despite the mixed reactions, XChat is now available in beta to some premium subscribers and is widely viewed as a direct challenge to privacy-focused apps like WhatsApp and Signal.

If successful, XChat could mark a significant step forward in Musk’s vision of a secure, all-in-one communication and finance hub.

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