Would You Entrust Your Savings to Elon Musk?

The question may seem hyperbolic, but essentially, that’s the multi-billion dollar query at the heart of Musk’s “everything app” vision, that he’ll be able to convince millions, even billions of people to entrust his X platform with all of their money, in order to conduct various financial transactions, all in-stream.

Musk’s view, based on his history in developing the first iteration of PayPal, is that facilitating payments is not enough, and that apps like PayPal could do so much more, in terms of providing banking services, loans, and credit options. Essentially, Elon’s view is that if online apps can cater to payments, then why can’t they replace banks wholesale, and enable simple, fee-free funds transfer, in various forms, to streamline and improve the banking system?

In theory, this makes sense. According to McKinsey, the average US household generates around $2,700 in banking revenues each year, based on fees and charges attached to their various accounts and loans, and that amount rises significantly for those earning over $100k. Imagine, then, if you didn’t have those extra costs, or you could limit them through alternative means.

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Published: 2023-08-14 20:53:56 ,

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