Elon Musk Launches XChat App with Bitcoin-Style Encryption, Crypto Community Skeptical

Tech billionaire Elon Musk, CEO of X (formerly Twitter), Tesla, and SpaceX, has unveiled a new messaging app called XChat, built with the Rust programming language and touting “Bitcoin-style encryption.” Despite the buzz around Musk’s latest tech release, both the crypto and tech communities remain unimpressed.

XChat promises end-to-end encryption, disappearing messages, and file-sharing capabilities across all platforms—without requiring a phone number. Yet the crypto community is questioning its security claims, especially the vague reference to Bitcoin-style encryption.

Experts argue that Bitcoin doesn’t use encryption in the traditional sense. Instead, it relies on digital signatures, not encrypted messaging. “This is like saying we decided to run our rocket on water, since NASA uses hydrogen and oxygen,” commented Ian Miers, a cryptography expert and professor at the University of Maryland, on X.

He pointed out that while Bitcoin employs cryptographic techniques, it doesn’t use encryption to protect data—transactions are publicly visible and verified through digital signatures. Miers further added that buzzwords like “Bitcoin-style” and “Rust” are not actual security protocols and don’t indicate strong protection for user communications. He warned that unless the encrypted messages are strictly in-app, it’s unlikely Rust alone guarantees privacy.

While Musk aims to position XChat as a secure, decentralized communication tool, the lack of technical clarity and misuse of crypto terminology has led to skepticism. The crypto market showed little reaction, with Bitcoin trading flat around $105,000, after a 3% drop last week, according to CoinDesk data.

As Elon Musk pushes further into the Web3 and privacy tech space, the real test will be whether XChat delivers on its promises—or just adds more noise to the already crowded messaging app market.