Elon Musk’s latest cost-cutting efforts in the federal government have raised concerns about potential conflicts of interest. The Consumer Financial Protection Bureau (CFPB), a regulatory agency overseeing financial services, has been shut down by the Department of Government Efficiency (DOGE).

The closure comes as Musk’s social media platform, X, expands into financial services through X Crypto and DOGE Payments. Critics argue that eliminating the CFPB could remove oversight that would have regulated Musk’s financial ventures.

CFPB Shutdown Raises Conflict of Interest Speculation

The CFPB, created after the 2008 financial crisis, was responsible for regulating financial services, including digital payment platforms. The agency had recently gained expanded powers to oversee major financial technology companies handling over 50 million transactions annually. This included companies like Apple Pay, Google Wallet, PayPal, and X Crypto.

The shutdown of the CFPB was reportedly executed by DOGE, a cost-cutting task force led by Musk within the Trump administration. The agency’s closure has led to employees being ordered to stop work, with its official website displaying an error message.

Consumer advocates suggest that this move could benefit Musk by eliminating regulatory scrutiny over X Crypto and DOGE Payments. Lindsay Owens, executive director of the Groundwork Collaborative, stated that “part of this is about clearing the way for Musk to move as quickly as possible” in developing X’s financial services.

Elon Musk’s X Crypto Expansion and CFPB’s Role

X, formerly known as Twitter, has been making significant moves in the financial sector. The platform recently secured a partnership with Visa to introduce X Money Account, a mobile payments service similar to PayPal and Venmo.

This service, allowing peer-to-peer transactions and money transfers, would have been subject to CFPB oversight before the agency’s shutdown.

Under newly finalized regulations, the CFPB was set to monitor digital payment platforms for fraud, privacy concerns, and dispute resolution practices. This oversight could have directly affected the rollout of X Crypto and DOGE Payments.

Adam Rust, director of financial services at the Consumer Federation of America, told the Washington Post that the agency “would likely be looking into the activities of X,” which may not have been favorable to Musk’s plans.

Elon Musk’s Blockchain Proposal and DOGE Payments

Elon Musk has also suggested using blockchain technology, which has been rumoured to be Cardano, for government operations through DOGE. According to reports, he proposed using digital ledgers to track federal spending, secure data, and facilitate payments. This aligns with his ongoing efforts to integrate cryptocurrency into X’s financial ecosystem, including the promotion of DOGE Payments.

Musk has previously advocated for expanding the use of Dogecoin, a cryptocurrency he has openly supported.

His financial technology ambitions suggest that blockchain-based payment capabilities may be included in X Money Account, potentially reducing reliance on traditional banking systems. Visa’s involvement in crypto and Elon Musk’s established ties to digital assets further support the possibility of blockchain integration in X Crypto.

Dogecoin Price Trend Amid Speculation

Speculation about Elon Musk’s financial moves has also influenced the cryptocurrency market. Dogecoin (DOGE) has seen price fluctuations as investors react to reports linking the cryptocurrency to Musk’s financial expansion.

Crypto analyst Trader Tardigrade has predicted a bullish target of $4 for Dogecoin, suggesting that DOGE could experience significant gains soon. At press time, Dogecoin price was trading at $0.2552, a 1.57% decline from the intra-day high of $0.267.

Concurrently, market expert CobraVanguard also shared that Dogecoin could first rise to $0.32 and later to $0.60 based on recent price movements.

The post Is Elon Musk Undermining CFPB to Boost X Crypto & DOGE Payments? appeared first on CoinGape.

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Filed under: News - @ February 13, 2025 7:15 pm