Elon Musk has officially launched XChat, a revamped direct messaging system on X, initially for Premium subscribers. This update, which users started noticing last week, isn’t just about making chats look cleaner. It represents a foundational step in Musk’s ambitious plan to transform X into an “everything app,” where messaging, payments, and financial services all live under one roof, with a wider rollout expected soon.
What’s New in X’s Encrypted Messaging
The new XChat is a complete overhaul built on a new backend. Musk claims it uses Rust, a language known for speed and security, along with what he calls “Bitcoin style encryption.” While the Bitcoin comparison is odd since its transactions are public, the update does bring significant security and feature enhancements.
For the first time, X DMs feel like a modern messaging tool. The changes finally address longstanding user requests and bring the platform up to speed with competitors like Signal and WhatsApp.
The most important upgrades include:
- End-to-end encryption is now turned on by default for all chats.
- Users can set messages to disappear after a specific time.
- File attachments are now fully supported.
- Audio and video calls can be made without sharing a phone number.
A Step Toward the ‘Everything App’ Vision
This messaging update is a clear move toward Musk’s long-stated goal of creating a “super app” similar to China’s WeChat. WeChat combines social media, messaging, banking, and e-commerce into a single, indispensable platform for its users.
However, recreating this model in the West has proven difficult. Companies like Facebook and Snapchat have tried to integrate payments into their messaging apps, but none have achieved the same level of adoption. Western users have historically been hesitant to mix their social and financial lives, often citing privacy concerns.
Still, Musk’s background with X.com, which later became PayPal, shows he has deep experience in the online finance world. This isn’t just a random idea; it’s a return to his roots in digital banking, suggesting a more calculated approach this time around.
Is XChat the Backbone for X Payments?
The timing of this release strongly suggests XChat is being positioned as the infrastructure for the upcoming X Payments service. To handle peer-to-peer payments and potentially replace bank accounts, a platform needs a secure, private, and real-time communication layer. XChat appears designed to be exactly that.
The connection between the new messaging features and a future payment system is hard to ignore. Analysts are already mapping out how today’s features could evolve.
| Feature | Current Status | Future Integration Possibility |
|---|---|---|
| Encrypted Messaging | Rolling out | Securely confirm transactions |
| File Attachments | Active | Send and receive invoices or receipts |
| Video/Audio Calls | Rolling out | Customer support or virtual commerce |
Big Hurdles Remain for Musk’s Grand Plan
Despite the technological advancements, X faces a major uphill battle: its shrinking user base. Since Musk’s takeover, third-party data indicates a significant drop in daily active users, and many advertisers have paused their spending on the platform.
In the world of social apps, network effects are everything; people use the platforms where their friends and family are. Even if XChat becomes technically superior to its rivals, it won’t matter if users have already moved their conversations elsewhere.
Beyond user retention, X must also navigate scaling challenges, potential legal issues surrounding encrypted financial messaging, and a general lack of trust from users who are wary of how their data is being handled. This messaging revamp is a critical brick in the foundation, but the house isn’t built yet, and it needs people to want to live in it.
