Given the fact X (the new branded Twitter) has languished in not only keeping advertisers (due to targeted poltical boycotts exacerbating the existing woes) but also by extension is losing daily active users, this meeting will be a watershed moment in how the banks will view the plan and THEIR prospects moving forward to monetize the platform.
Musk has a storied history in the payments space having been a co founder of PayPal in the day. He has repeatedly insinuated that some sort of hybrid payments platform is in the cards for the “platform’ which although it lags behind the majors in scope and reach at this point, it is still a powerful base to build from globally.
The disasters of Truth Social and Threads and muted growth of Mastodon and other social media competitors as X vacillated in it’s traffic set the table for a massive overhaul of the platform as the bankers assess the financial prospects moving forward.
The wild card here is the SEC and it’s complete about face on crypto recently . Globally other countries are more embracing of crypto so in theory X could cultivate brand loyalty thru cryptocurrency offerings in those countries but a GLOBAL ADOPTION of crypto impossible without the financial global linchpin BIG DOG which is our Federal Reserve involved.
The connundrum is the XRP debacle here in the States. We have been watching for years as the SEC has seemingly capitulated in allowing INSTITUTIONS the sanctioned ability to trade crypto assets amongst themselves in regards to this case but abruptly changed course in allowing a securities classification for PERSONAL use, key to universal adoption HERE.
It appears there is a serious paranoia on the fact our Federal Reserve (owned by international bankers, NOT our government) is fearful of a decentralized platform out of their control that would completely undermine their ability to control “things” and usher in a tsunami of assets flocking to that platform as a hedge against the slowly eroding decimation of the US dollar.
This is evidenced by a Who’s who of financial giants lined up in applying for asset custodian status to buy sell and trade digital currencies if and when the SEC issues approval.
BlackRock, Citadel, JP Morgan Chase, Deutsche Bank , Citibank and others representing TRILLIONS of dollars of assets have already submitted applications for this.
So Musk sits at a point in history where he could again DISRUPT banking as we know it as he did with PayPal all those years ago. Think about the fact bankers at this point exist in a bunker mentality. Between potential commercial real estate exposures to financially destructive derivative realities coupled with the disaster that many midsize banks are experiencing in the diminishing values of their bond positions due to the explosive interest rate increases over the last 2 years, what THESE bankers choose to do with their investment in X could be quite telling.
When you factor in the fact many MAJOR banks (giving community banks the edge in our view) are seeing a major outflow of deposits looking for higher returns while the 100B banks are being forced by the Fed to increase their reserves crippling their yield curves and supplemental leverage ratios (defined as dollar value they can borrow fron the Fed after stress tests determine net assets) severely restricting capital available to small business and credit to consumers (read REVENUE), it makes for a most unusual environment for disruptive growth…