.webp)
Elon Musk has introduced a new messaging feature on X called XChat, designed with enhanced communication tools and what he calls “Bitcoin-style encryption.”
Announced via a June 1 post, XChat builds on the platform’s existing direct messaging service, incorporating media sharing, calls, and encryption architecture that Musk claims mirrors Bitcoin’s approach to data security.
The move continues his effort to transition X into a broader “everything app,” complete with social, communication, and eventually financial tools.
Messaging upgrade includes encryption, file sharing, and disappearing chats
XChat is being developed in the Rust programming language and aims to provide more robust user features. Users can expect capabilities such as audio and video calls, vanishing messages, encrypted exchanges, and file sharing.
A four-digit passcode appears to be part of the security mechanism, as reported by TechCrunch.The feature rollout comes just days after X paused its earlier encrypted messaging tool, hinting that the two efforts might be connected.
Musk’s mention of “Bitcoin-style encryption” sparked discussion among crypto insiders. Figures like JAN3 CEO Samson Mow and Bitcoin developer Luke Dashjr were quick to point out that Bitcoin itself doesn’t rely on encryption in the traditional sense.
Instead, it uses elliptic curve cryptography to authorize transactions without exposing private keys, and SHA-256 hashing to maintain network integrity.
Some speculate Musk may have been referencing BIP-151, a Bitcoin Improvement Proposal that introduces encryption for peer-to-peer communications between nodes.
Payments and privacy converge as X moves toward app transformation
XChat is currently rolling out to paid subscribers, reflecting a gradual onboarding strategy. Meanwhile, Musk has confirmed that the platform is also testing a financial feature named X Money, expected to launch in beta later in the year.
While details are still emerging, the feature is intended to handle savings and payments, similar to existing platforms like Venmo and Cash App. Musk noted that early testing will be highly limited, with precautions taken due to the nature of handling user funds.
X’s new direction appears to position it alongside encrypted communication platforms such as Signal and Telegram, while also setting up competition with fintech products.
Since acquiring the platform in October 2022, Musk has frequently stated his ambition to make X a multifunctional utility hub that expands well beyond social networking.
