Elon Musk is perhaps the biggest proponent of Dogecoin and with Tesla's investment in Bitcoin, many investors as well as analysts are paying attention to his moves. Ever since he took over Twitter last year hopes are high that either Dogecoin or Bitcoin could play an important role in the future development of the social media platform.

Why did Dogecoin jump up in price and how could crypto payments become part of Twitter?

Evolving Twitter into a fintech

Musk has made it clear that he has a vision for Twitter that is similar to WeChat. The social media platform is dominant in China and it also integrated payments. With that in mind, Musk is probably thinking of turning Twitter into a platform that offers everything people need for their lives. Exchanging ideas and opinions as well as transferring money.

According to a Financial Times report, the company has applied for licenses needed to transmit money and is also developing software that is needed for this step.

Payment features have been implemented before Musk took over, but it seems that he has bigger plans than just providing the option to tip social media accounts. His plans are ambitious since regulators are moving carefully after witnessing the FTX collapse. Twitter will come under heavy scrutiny and it is not clear if applications will become successful. Facebook failed with its Libra Association rebranded into Diem and eventually gave up because top-tier politicians and regulators were concerned about its plans to become a global payment service.

Dogecoin price jumped up on the news

For most crypto proponents and traders these thoughts are mere technicalities. Once the FT report was published and mentioned that crypto would also be taken into consideration by Twitter, the market went wild.

This led to a Dogecoin rally at the end of January, carrying the price to a new yearly high yesterday. Of course, this is also because the market has been recovering since the beginning of the new year. It remains to be seen if Twitter can get those licenses and the needed software running. Only then it makes sense to speculate on broader crypto adoption.

Another factor that comes into play is stablecoins. While Dogecoin is very popular among the crypto community, stablecoins would offer significant advantages for payments in comparison to a volatile asset like DOGE. However, if Twitter integrates crypto one way or another this would constitute mega-bullish news for the whole crypto industry.