David Edwards
Social media platform X, formerly known as Twitter, is set to launch a major upgrade to its messaging services under the brand “XChat,” which, according to owner Elon Musk, will include “Bitcoin-style encryption.”
Announced in a June 1 post, Musk detailed that XChat will enhance the platform’s direct messaging functionality with advanced features such as end-to-end encryption, disappearing messages, audio and video calling, and support for file transfers. The system is reportedly built using the Rust programming language and incorporates a “whole new architecture,” which Musk compared to Bitcoin’s cryptographic model.
The rollout comes days after X paused its earlier encrypted messaging service on May 29, hinting that the temporary halt may have been connected to the development of XChat.
Musk’s reference to “Bitcoin-style encryption” stirred debate within the crypto community. Critics, including Bitcoin core developer Luke Dashjr and JAN3 CEO Samson Mow, pointed out that Bitcoin does not actually use encryption for its primary operations. Instead, it relies on elliptic curve cryptography (ECC) to enable secure, irreversible transactions. ECC ensures transaction integrity without revealing private keys and supports proof of ownership in a decentralized system.
BitMEX Research speculated that Musk may have been alluding to BIP-151, a Bitcoin Improvement Proposal aimed at encrypting peer-to-peer communication between nodes.
Despite the controversy, the enhanced security features and integration of Rust suggest that X is seeking to compete directly with secure messaging platforms like Signal and Telegram. According to TechCrunch, the new XChat interface is currently rolling out to paid subscribers and includes a four-digit passcode layer for added protection.
In parallel, Musk confirmed on May 25 that X is testing a new payments product, dubbed “X Money,” which will debut later in 2025. The feature is undergoing limited-access beta testing, with Musk emphasizing the importance of caution when managing users’ financial data.
Musk, who acquired X in October 2022, has consistently expressed ambitions to transform the platform into a multifaceted “everything app” akin to China’s WeChat. The integration of encrypted messaging and financial services indicates that the company is actively moving toward that vision.
