Elon Musk has announced that X, the social media platform formerly known as Twitter, is introducing a new direct messaging feature called XChat, which he claims will offer “Bitcoin-style encryption.” The statement has sparked debate among Bitcoin experts, who were quick to dissect the technical implications.
XChat is positioned as an upgraded version of X’s existing direct messaging system. According to Musk’s June 1 post on the platform, the feature will include audio and video calling, end-to-end encryption, disappearing messages, and support for file sharing. Musk also revealed that the service is being developed using the Rust programming language and described its encryption as having a “whole new architecture.”
This development follows X’s announcement on May 29 that it was temporarily disabling its encrypted messaging feature to implement improvements—potentially laying the groundwork for XChat’s release.
Musk’s reference to “Bitcoin-style encryption” quickly drew responses from notable figures in the crypto community. JAN3 CEO Samson Mow responded by clarifying that “Bitcoin isn’t encrypted,” while crypto commentator “Pledditor” pointed out that Bitcoin employs elliptic curve cryptography, not traditional encryption methods.
Bitcoin core developer Luke Dashjr echoed these sentiments, stating flatly, “Bitcoin doesn’t even use encryption,” and criticized the use of Rust for security-related applications.
BitMEX Research offered a possible interpretation, suggesting that Musk might have been referencing BIP-151—a Bitcoin Improvement Proposal aimed at enabling encryption for peer-to-peer communications between Bitcoin nodes.
Bitcoin’s cryptographic foundation relies on elliptic curve algorithms, allowing users to generate a public key from a private key in a mathematically secure, one-way process. This cryptography ensures transaction authenticity without exposing private keys. Additionally, Bitcoin uses SHA-256 hashing for validating transactions and generating block and transaction identifiers.
According to a report from TechCrunch, XChat is currently being rolled out to premium subscribers and includes a four-digit passcode protection feature.
In a related development, Musk confirmed on May 25 that X is also preparing to launch a payments feature called X Money, with beta testing expected later this year. He emphasized that the initial rollout would be a “very limited access beta,” noting, “when people’s savings are involved, extreme care must be taken.”
Since acquiring X in October 2022, Musk has repeatedly stated his intention to transform the platform into an “everything app” akin to China’s WeChat. The rollout of XChat and X Money suggests the company is taking concrete steps to expand into encrypted messaging and financial services, positioning itself as a potential rival to platforms like Signal, Telegram, Venmo, and Cash App.
