Elon Musk Unveils XChat with “Bitcoin-Style” Encryption
- Elon Musk launches XChat with “Bitcoin-style” encryption on June 1.
- XChat integrates encrypted and vanishing messages features.
- Announcement sparks technical skepticism within the crypto community.
Elon Musk announced the launch of XChat on June 1, 2025, on X, integrating “Bitcoin-style” encryption for direct messaging.
The announcement aims to enhance platform security, but faces scrutiny regarding the technical validity of its encryption claims.
XChat Launched: “Bitcoin-Style” Encryption at Its Core
Elon Musk’s announcement of XChat introduces “Bitcoin-style” encryption to X’s direct messaging. The feature includes encrypted messages, those that vanish, and cross-platform audio/video calls. Released on June 1, 2025, this marks a significant platform update.
Musk’s leadership drives these changes since acquiring Twitter in 2022. XChat is rebuilt in Rust and signifies a shift from its previously paused encrypted DM system. The feature reflects broader strategies encompassing digital financial services.
XChat Sparks Crypto Community Skepticism
XChat’s introduction did not materially alter Bitcoin’s market, which remained trading near $105,000. Financial analysts noted that despite the excitement, the announcement has not significantly impacted the Bitcoin market. Musk’s announcement, however, sparked skepticism within the crypto community due to misrepresented technical details.
The financial implications of integrating “Bitcoin-style” encryption are unclear, but they align with Musk’s vision of expanding financial service offerings, such as the upcoming X Money platform for peer-to-peer payments.
Experts Question “Bitcoin-Style” Encryption Claims
Historically, X has provided some encrypted messaging for paid subscribers. Pausing the previous system points to a strategic shift, with XChat as a full replacement for enhanced security architecture.
Expert analysis highlights concerns over Musk’s encryption claims, noting Bitcoin’s use of different cryptographic principles (source). “Musk’s characterization of ‘Bitcoin-style’ encryption raises technical questions, particularly as Bitcoin’s original code was primarily written in C++, not Rust,” commented a crypto expert (source). This skepticism may shape future community and market reactions.
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