Elon Musk only announced yesterday the launch of X Money for April, and everyone is already speculating about Dogecoin again. It’s like a script that keeps repeating itself since 2021: Musk says something about payments on X, everyone thinks DOGE will be integrated, and the price rises for a few minutes. This time was no different either, even though the announcement makes it very clear that X Money is a purely fiat product, nothing to do with crypto.

X Money will offer peer-to-peer transfers, bank deposits, a debit card, and cashback in partnership with Visa. The platform already has licenses in more than 40 states in the US through X Payments. Basically, it’s like Venmo with a social network attached, not a crypto wallet. But you know how the community is—when Musk and payments show up together, people start connecting the dots with Dogecoin, their favorite cryptocurrency.

Dogecoin saw a small gain shortly after the announcement, but it’s down 2.5% over the past 24 hours, tracking the overall trend in the crypto market. It’s currently trading at around $0.09. Musk has publicly called DOGE his favorite cryptocurrency, and even Tesla accepted DOGE for merchandise in 2022, so it’s not hard to see why people are speculating about integration.

What’s really catching regulators’ attention, however, is the 6% yield proposed by X Money. Six percent on balances within a social media app used by hundreds of millions of people is higher than almost all savings accounts in the US and competitive with money market funds. This is going to draw a lot of regulatory scrutiny because it directly competes with traditional banking products.

The timing is interesting because Congress is debating the Lei CLARITY Act just about yield-bearing products, including stablecoins. The key question is whether non-bank platforms should be allowed to offer returns similar to deposits. X Money isn’t a stablecoin, but it’s aiming at exactly the same consumer demand as those looking for better returns than banks offer.

Separately, the WLFI token from World Liberty Financial is having a tough time, down 9.47% over the past 24 hours, reaching the lowest levels since its launch in 2025. The company linked to Trump defended a controversial lending strategy on the DeFi platform Dolomite and used its own governance token as collateral, which drew a lot of criticism from the community.

In the end, the Musk-Dogecoin dynamic is still one of the most predictable patterns in the crypto market. But this time, the real focus is on how regulators will handle X Money and its competitive yields, regardless of whether there will be crypto integration in the future.