Elon Musk Says New XChat Is Coming With ‘Bitcoin Style’ Encryption

Elon Musk announced Sunday that X (formerly Twitter) is rolling out XChat, a comprehensive new messaging platform featuring end-to-end encryption, disappearing messages, and cross-platform audio and video calling capabilities. However, the announcement has sparked confusion and skepticism among Bitcoin developers and cryptography experts.

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

What Is XChat?

In a post on X, Musk described XChat as “all new” with several advanced features:

• End-to-end encryption for secure communications
• Vanishing messages for enhanced privacy
• File sharing capabilities for any file type
• Audio and video calling across platforms
• No phone number requirement for registration

“All new XChat is rolling out with encryption, vanishing messages and the ability to send any kind of file. Also, audio/video calling,” Musk wrote. “This is built on Rust with (Bitcoin style) encryption, whole new architecture.”

The Bitcoin Encryption Controversy

Musk’s claim that XChat uses “Bitcoin style” encryption has drawn sharp criticism from cryptocurrency experts who point out a fundamental misunderstanding of how Bitcoin actually works.

“Bitcoin doesn’t even use encryption,” said Luke Dashjr, a Bitcoin Core developer and OCEAN CTO, in response to Musk’s announcement. This sentiment was echoed by JAN3 and Pixelmatic CEO Samson Mow, who simply stated: “Bitcoin isn’t encrypted.”

Bitcoin doesn’t even use encryption..

Also Rust is woke

— Luke Dashjr (@LukeDashjr) June 1, 2025

Ian Miers, Assistant Professor of Computer Science at the University of Maryland, offered a more detailed explanation: “Bitcoin primarily uses signatures, not encryption. This is like saying, we decided to run our rocket on water, since NASA uses Hydrogen and Oxygen.”

The confusion stems from the difference between encryption and cryptographic signatures. While Bitcoin uses advanced cryptographic techniques like elliptic curve cryptography and SHA-256 hashing for key generation and transaction validation, it doesn’t encrypt data for confidentiality. In fact, all Bitcoin transactions are publicly visible on the blockchain.

Technical Architecture Questions

Beyond the encryption terminology, experts have also questioned other technical claims about XChat’s architecture. Shaw Walters, founder of Eliza Labs, pointed out that “Bitcoin was written in cpp,” referring to C++, while “Rust clients came later.”

Bitcoin was written in cpp

Rust clients came later

The difference on something like a stream manager between rust and node or python is pretty tiny since it’s just wrapping pointers

Rust is cool but code isn’t magically better because it is rust

— Shaw (@shawmakesmagic) June 1, 2025

Miers added: “Needless to say ‘Bitcoin style’ and ‘Rust’ are not descriptions of an encryption scheme, nor are they strong indicators of security for a messaging app.”

Current Status and Availability

According to reports, XChat is currently in beta mode and available to select paid X subscribers. App researcher Nima Owji has shared screenshots indicating support for:

• Advanced group chat functionality
• Vanish mode for temporary messages
• Four-digit passcode security for message access

The platform appears to be positioning itself as a direct competitor to established secure messaging apps like WhatsApp, Telegram, and Signal.

Part of Broader X Transformation

XChat represents another step in Musk’s ambitious plan to transform X into an “everything app” similar to China’s WeChat. This vision encompasses messaging, media, payments, and even dating services. In a 2023 company meeting, Musk outlined plans for X to function as both a “fully fledged” dating app and digital bank by 2024.

The messaging rollout coincides with other significant developments at X, including the soft launch of “X Money,” a new digital wallet feature developed in partnership with Visa for peer-to-peer payments.

Industry Context and Competition

Musk’s super app ambitions aren’t unique in the tech industry. OpenAI CEO Sam Altman is pursuing similar goals with his World project, which recently launched its own app store and biometric verification tools.

However, with 600 million monthly active users as of October 2024, X holds a significant advantage in the race to build a Western super app—provided it can maintain user engagement and trust.

Also Read: Michael Saylor’s Bitcoin Tracker Post Sparks Market Speculation as Strategy Purchase Signals Mount

Market Response

The cryptocurrency market showed little reaction to the XChat announcement. Bitcoin remained relatively stable near $105,000, having dropped over 3% the previous week. The muted response may reflect the crypto community’s skepticism about the technical claims made in the announcement.

Privacy and Security Implications

While the specific technical details of XChat’s encryption remain unclear, the platform’s emphasis on privacy features comes at a time of increased scrutiny over digital communications security. The addition of disappearing messages and file sharing without phone number requirements suggests X is attempting to appeal to privacy-conscious users.

However, without clear technical documentation or independent security audits, experts remain cautious about the platform’s actual security capabilities.

Stay ahead with real-time crypto live news updates on Bitcoin, Ethereum, altcoins, market trends, and blockchain innovations.

Looking Ahead

X has not provided additional technical documentation about XChat’s architecture or encryption methods following Musk’s initial announcement. The company did not immediately respond to requests for clarification about the “Bitcoin style” encryption claims.

As XChat continues its rollout to more users, the tech community will likely scrutinize its actual security implementation to determine whether it lives up to the privacy and encryption promises made in Musk’s announcement.

The success of XChat could be crucial to Musk’s broader vision of transforming X into a comprehensive digital platform that extends far beyond its social media origins. However, building user trust in security and privacy features will require more than catchy terminology—it will need robust, properly implemented cryptographic protocols that can withstand expert scrutiny.

CryptoNewsToday is a leading platform providing the latest updates, trends, and analysis in the cryptocurrency world. Stay informed with timely news on Bitcoin, altcoins, blockchain technology, and more.