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X launches encrypted messaging to challenge WhatsApp, Signal

The news: X is rolling out an encrypted messaging service to users.

  • The chat service, called XChat, will include features like disappearing messages, the ability to send any type of file, and support for audio and video calls.
  • X owner Elon Musk said XChat will have “Bitcoin style” encryption and will be available to all users this week, barring any scaling issues.

Killer app: Musk has long sought to make X an everything app like WeChat, where users can shop, message, and post from a single location.

Expanding beyond public posting could help X take on rivals like Meta’s WhatsApp, Signal, and Telegram. If the encryption proves trustworthy and the features are stable at scale, XChat could give X a foothold in the private-messaging realm.

Adoption hurdles: Gaining user trust could be a major challenge, especially given X’s broader reputation around content moderation, security, and user privacy.

Encrypted messaging apps depend on user confidence, particularly when privacy is a core value proposition. It’s unclear if XChat’s content will be used to train X or xAI’s products.

Some experts have criticized Musk’s description of “Bitcoin-style” encryption, as the terminology may be either misleading or misused.

Our take: Product strength isn’t enough to entice adoption if user trust is missing. Transparency around how XChat’s encryption works or plans for its data are necessary, or privacy-conscious users may stick with more established platforms like Signal or Telegram.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.

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