Leak Reveals Elon Musk, X And Wall Street Could Be About To Cause Bitcoin And Crypto Price Chaos With ‘PayPal Update’

Tesla TSLA billionaire and X owner Elon Musk has a habit of causing wild swings for the bitcoin price and other major cryptocurrencies (with Musk lobbing a grenade into the crypto market earlier this month).

The bitcoin price has swung wildly over the last few months as economic and regulatory pressures mount—though traders are now braced for a $15.5 trillion September Wall Street earthquake.

Now, after a U.S. Securities and Exchange Commission (SEC) insider has warned bitcoin and crypto buyers to beware of Binance, a leak has suggested Musk could turn X (Twitter) into an "updated version of PayPal PYPL ."

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Musk "continues to have conversations [with] top Wall Street executives on [the] future of X," Fox Business News correspondent Charles Gasparino, posted to X.

"Seems to be settling, they tell me, on a new-fangled payment system, [an] updated version of PayPal. It will offer low transaction costs (as opposed to credit cards) and monetize user info."

Earlier this month, media reports denied by Musk suggested X could add a trading platform built inside the app as part of a plan to turn the app into a financial-data giant, with Musk going on to say X will never launch a cryptocurrency of its own to rival bitcoin, ethereum, $XRP $XRP or Musk's "fave" cryptocurrency dogecoin.

PayPal, the payments giant Musk's X.com created when it merged with Confinity in March 2000, earlier this month launched a U.S. dollar-pegged stablecoin PYUSD, hoping to succeed where Meta, then Facebook, failed with its own libra-turned-diem stablecoin.

PayPal's support for bitcoin and crypto in late 2020 helped kick off the latest bitcoin price bull run that catapulted bitcoin to almost $70,000.

"We saw PayPal introduce its stablecoin—that also acts as a stamp of approval," Gavin Michael, the chief executive of Intercontinental Exchange-owned bitcoin custody company Bakkt, said in emailed comments.

Michael called BlackRock's plans to create a long-awaited U.S. spot bitcoin exchange-traded fund (ETF) a "stamp of apporval" as well. BlackRock, the world's largest asset manager, triggered a resurgence of Wall Street interest in bitcoin and crypto when it filed for a spot bitcoin ETF in June.

"We’re starting to see people settling transactions over stablecoins, whether they’re minted on a private or public blockchain and we like that as well because what it’s starting to show is that the technology itself is making conventional financial services better," Michael said.