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this post was submitted on 27 Oct 2023
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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.
He’s recreating Venmo. 😂
And let's remind everyone because people seem to forget.
PayPal is NOT FDIC insured!
I pretty much run everything through paypal for the extra layer of security.
It saved my ass when I was doxxed and hacked. I had my logins and financial information stolen.
I can totally see not putting more than a few thousand into the balance if you're going to use it like a secured credit card.
Otherwise, keeping $0 in it and using it as a middle man between your bank and the outside world is a fantastic solution to protecting yourself.
Was forced out of after he almost tanked the company trying to do this exact thing.
What's the definition of insanity again?
Yeah, it’s not an original idea. He’s recycling his ideas.
ExTwitter
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.
FWIW his white whale or inspiration is more like the Chinese “we do everything” apps / platforms https://wise.com/us/blog/chinese-payment-app
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
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
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.
Paypal is a bank here in europe. Hope musXk leaves Europe.
iirc the money storage aspect of PayPal has to be regulated as a bank.
I think because they're a payment processor. Banks store large amounts of money, make loans, etc.
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.
They issue credit and lenders finance this. There's always a bank.
Cobble?
The Things been put in charge of their legal team.
It's cobblin' time
makes shoes
Yes, jesus thank you. It was right on the tip of my tongue.
"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.
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.
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.
Wells Fargo still existing is pretty good evidence
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.
Wanting or able to handle it?
Yes
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.
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.
Best he will do is another paypal/venmo thing. No way its gonna be a bank.
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.
I wouldn’t trust this trust fund mafioso with a plastic spoon, let alone banking credentials.
Wait until you find out he founded Paypal, which was called X.com at the time
He didn't found paypal (or x.com for that matter) but he was CEO (?) of X when it acquired paypal, which promptly ousted him for trying to rebrand paypal to X despite the former already have massive brand recognition thanks to its exclusive partnership with eBay.
Well he made PayPal.
So he probably knows a thing or two about the financial sector.
Maybe he'll integrate PayPal into X
He didn't though.
Don't believe all the bullshit about what he has "created". He was fired, but got to keep is equity. Peter Thiel was the PayPal founder.
Tesla was founded by Martin Eberhard and Marc Tarpenning in 2008.
For a long while, Elon was very successful and very popular. Like most CEOs, he claimed all the work at Tesla and SpaceX is of his own creation. And sure, I am sure he was responsible for a lot of the financial success of those two companies. He sets goals for a company and the people in those companies try to achieve those goals. In Elon's case, he sets many goals and many projections that tend to fall flat. That doesn't matter if you are successful in getting more investors and boost stock prices.
However, once he started running his mouth on Twitter, it became very clear that his charisma couldn't keep up.
Also, the financial sector is nothing like it was when PayPal was founded. There weren't regulations in place that could apply directly to that kind of company yet. While he may know more about the financial sector simply because he deals with many more zeros on a daily basis, his "revolutionary" description of how he wants to transform X shows that he is way out of touch.
Quite simply, Elon has proven that he cannot be trusted, especially when it comes to reporting anything financial. For example, him and the "CEO" of X are currently saying that advertisers are returning at record rates. This is getting proven wrong, or being shown as misleading at best.
Nope, PayPal bought his x.com company and fired him as the CEO.
He didn't make paypal. Not even a founder.
Wasn't his company bought out by PayPal?
No another fascist created PayPal.
He didn't though. He failed to make X, got booted out for being insufferable, then the company he owned equity in bought and sold PayPal