Social media platform X, owned by Elon Musk, is launching a new feature-rich messaging tool called XChat, aimed at rivaling established encrypted communication apps like Signal and Telegram.
According to a June 1 X post by Musk, XChat includes audio and video calls, file sharing, disappearing messages, and “Bitcoin-style encryption.”
Built using the Rust programming language, Musk described the system as having “a whole new architecture” for secure communications. However, his reference to “Bitcoin-style” encryption has stirred confusion and debate among crypto experts and developers.
All new XChat is rolling out with encryption, vanishing messages and the ability to send any kind of file. Also, audio/video calling.
This is built on Rust with (Bitcoin style) encryption, whole new architecture.
— Elon Musk (@elonmusk) June 1, 2025
Several Bitcoin veterans were quick to clarify Musk’s statement. JAN3 CEO Samson Mow and Bitcoin developer Luke Dashjr pointed out that Bitcoin doesn’t technically use encryption. Influencer “Pledditor” noted that Bitcoin instead relies on elliptic curve cryptography, a method of securing digital ownership without directly encrypting data. Dashjr also criticized the choice of Rust for security-related applications, calling it “a bad idea.”
BitMEX Research offered a more charitable interpretation, suggesting Musk might be referencing BIP-151, a Bitcoin Improvement Proposal focused on peer-to-peer message encryption within Bitcoin nodes.
XChat appears to be a major upgrade to the platform’s existing direct messaging feature, which had recently been paused as the company worked on improvements—possibly paving the way for this launch. According to TechCrunch, the feature is now being gradually rolled out to premium subscribers and is secured by a four-digit passcode.
This rollout is part of Musk’s broader vision to evolve X into an “everything app,” akin to China’s WeChat. On May 25, Musk also confirmed that X is developing a new financial service, X Money, which will enter limited beta testing later this year. He emphasized that caution is paramount when dealing with users’ finances.
Musk’s artificial intelligence company, xAI, also launched Grok 3, the latest iteration of the model powering its chatbot. Musk and the xAI team unveiled the model, claiming it demonstrated superior results across multiple AI evaluation tests.
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