Elon Musk launches Xchat with “Bitcoin-style encryption” amid crypto debate

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Elon Musk has announced a new update to X, a social media platform previously known as Twitter. A new feature is being rolled out, called Xchat, offering private messaging protected in what Musk calls “Bitcoin-style encryption.”

He said:

“All new XChat is deployed with the ability to encrypt, lose messages, send any kind of files. Also audio/video calls.”

Xchat replaces the platform’s standard direct messaging with a more sophisticated system. It supports end-to-end encryption, message loss, and sending a variety of file types.

At the same time, users can initiate voice calls without linking their phone numbers. It is designed to work across devices and operating systems.

Musk described xChat as a complete reconstruction and developed it using the Rust programming language. He emphasized that the encryption model borrows from the concepts used in Bitcoin architecture, but did not provide technical details.

The move reflects Musk’s ambition to turn X into a multipurpose platform that combines social networking, communications and financial services.

Last month, Musk confirmed that X will be rolling out its payment service in beta mode soon. He said:

“This will be a very limited access beta at first. If people’s savings are involved, you need to be extremely careful.”

This is based on an earlier statement from X CEO Linda Yaccarino, with digital wallet service X Money expected later this year. The platform is affiliated with Visa, allowing users to connect debit cards, send funds, and make peer-to-peer payments directly within the app.

Crypto Community Splits “Bitcoin Style” Encryption

The reference to “Bitcoin-style encryption” sparked debate in the crypto space. Some developers have argued that the phrase is misleading.

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Bitcoin core developer Luke Dashjr says Bitcoin itself does not use encryption and does not criticize the rust choice of security-critical components. He pointed out:

“Bitcoin doesn’t even use encryption, and Rust is awake.”

Meanwhile, Bitmex’s research suggests that Musk may refer to BIP-151, a proposal to encrypt data exchanged between Bitcoin nodes.

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

“‘Bitcoin Style’ ~=’peer to peer’ ~=’end-to-end. Therefore, “Bitcoin Style Encryption” means “end-to-end encryption.” ”

Other experts pointed out as an explanation possibility, elliptic curve encryption (ECC), a mathematical method used in Bitcoin to generate and manage private keys.

Despite the mixed reaction, Xchat is now available in beta to several premium subscribers and is widely seen as a direct challenge to privacy-centered apps such as WhatsApp and Signal.

If successful, Xchat can take an important step in the mask’s vision of a safe, all-in-one communication and finance hub.

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