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“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. I’m talking about, like, you won’t need a bank account.”

Well that sounds terrifying!

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[-] Humanius@lemmy.world 423 points 1 year ago* (last edited 1 year ago)

Just wait till Musk learns about banking regulations.
He's already complaining about the EU regulations on social media, but they nothing compared to what banks have to deal with.

[-] jollyrogue@lemmy.ml 134 points 1 year ago

He’s recreating Venmo. 😂

[-] Coasting0942@reddthat.com 3 points 1 year ago
[-] remotelove@lemmy.ca 9 points 1 year ago* (last edited 1 year ago)

That is too simplistic of a name and un-original.

If this product moves forward, it's likely to be on a small scale. For example, like when a person needs to send a friend reimbursement for a coffee. So, initially, if it needs a simple name for paying back friends, or other pals, why not just call it Pay-A-Pal, or PayPal for short.

No bank account, no actual cash and everything happens in the system. It's revolutionary! It's like digital transactions that happen through pure accounting for a small fee. Like credit cards, but those are old.

[-] PumpkinEscobar@lemmy.world 2 points 1 year ago

FWIW his white whale or inspiration is more like the Chinese “we do everything” apps / platforms https://wise.com/us/blog/chinese-payment-app

[-] otter@lemmy.ca 1 points 1 year ago

Without getting official government institutions on board or making the app mandatory in some way, I don't see how this would work outside of authoritarian countries

They're bleeding users and advertisers as it is

[-] NuXCOM_90Percent@lemmy.zip 66 points 1 year ago

This will almost definitely have a large "crypto" aspect. Which means the business model starts at unregulated fraud and gets worse from there.

But yeah, I assume there is a whiteboard at twitter headquarters, smeared with feces, that has

  1. Become bank
  2. ...
  3. Too big to fail
[-] CmdrShepard@lemmy.one 22 points 1 year ago* (last edited 1 year ago)

Somehow services like PayPal manage to avoid being regulated like a bank. I'm sure they'll ~~clobber~~ cobble together some potentially unlawful solution and not face any repercussions for it.

[-] EyIchFragDochNur@feddit.de 28 points 1 year ago

Paypal is a bank here in europe. Hope musXk leaves Europe.

[-] notthebees@reddthat.com 24 points 1 year ago

iirc the money storage aspect of PayPal has to be regulated as a bank.

[-] someguy3@lemmy.ca 12 points 1 year ago

I think because they're a payment processor. Banks store large amounts of money, make loans, etc.

[-] givesomefucks@lemmy.world 19 points 1 year ago

It's going to be like a crypto or PayPal wallet where you can store a balance, it's just not insured or regulated like a bank.

I saw an article a while ago where a concerning amount of people were doing that instead of a bank account.

[-] grabyourmotherskeys@lemmy.world 3 points 1 year ago

They issue credit and lenders finance this. There's always a bank.

[-] SpaceNoodle@lemmy.world 10 points 1 year ago
[-] Deceptichum@kbin.social 6 points 1 year ago

The Things been put in charge of their legal team.

[-] SpaceNoodle@lemmy.world 3 points 1 year ago

It's cobblin' time

makes shoes

[-] CmdrShepard@lemmy.one 4 points 1 year ago

Yes, jesus thank you. It was right on the tip of my tongue.

[-] harmonea@kbin.social -1 points 1 year ago

"Clobber" implies violence, which is somehow even less elegant than the standard phrase that the haphazard "cobble" implies. Given the shitshow of X so far, clobber probably works better even if it's not the usual way to phrase this at all.

[-] Bizarroland@kbin.social 4 points 1 year ago

And despite cobble and clobber implying violence and inelegance, cobblers are either some of the best versions of pies or the people that maintain your fanciest of shoes.

[-] IWantToFuckSpez@kbin.social 20 points 1 year ago* (last edited 1 year ago)

Even if he complies to all the regs. There is no way people in the west will switch to his app. The reason why those all-in-one apps took off in China and Southeast Asia is because banking infrastructure sucked hard before. You could only pay cash in most places unless you went to more upscale stores. Because those payment terminals are just too expensive for many small time businesses. With the arrival of those apps even a street vendor could afford to accept digital payments. Thus lots of people started using those apps to pay. The western countries already have good banking infrastructure and people are very hesitant to switch banks.

[-] Garbanzo@lemmy.world 12 points 1 year ago

people are very hesitant to switch banks.

Wells Fargo still existing is pretty good evidence

[-] tony@lemmy.hoyle.me.uk 15 points 1 year ago

I think it's plausible he will actually pull X out of the EU completely and concentrate on the US. Banking regulations around the world vary greatly and I can't see him wanting to handle all that.

[-] Whiskeyomega@kbin.social 5 points 1 year ago

Paypal was built on the idea of a system that was without regulations that were tough. Paypal in the UK operated out of Ireland up until recently out of FCA control knowing full well they were committing fraud on a grand scale with things like "We're closing your account and if you want your money back get in contact with us in 180days time" which was the email people used to get when the system didnt like you for any reason.

[-] jonne@infosec.pub 3 points 1 year ago

Yeah, getting the licences involves a ton of audits, compliance to a bunch of regulations, etc. All stuff Twitter has no experience with.

It would literally be easier to just start this thing from scratch instead of grafting it onto a social network.

[-] dansity@lemmy.dbzer0.com 2 points 1 year ago

Best he will do is another paypal/venmo thing. No way its gonna be a bank.

[-] Silverseren@kbin.social 4 points 1 year ago

I mean, he wanted Paypal originally (and to name it X), so this just seems like the end goal he was trying to get to the whole time.

And it will still crash and burn. Gloriously so.

[-] Maeve@kbin.social 0 points 1 year ago

I wouldn’t trust this trust fund mafioso with a plastic spoon, let alone banking credentials.

this post was submitted on 27 Oct 2023
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