Elon Musk Denies US Government Plans to Use Dogecoin

Musk confirmed that the U.S. government has no intention of using Dogecoin, despite the meme coin’s logo appearing on the official website of the new federal department.

His statement put an end to rumors about potential government adoption of the meme coin. Moreover, Musk emphasized that the D.O.G.E. department has no affiliation with DOGE.

Elon Musk explained that he chose the name “Department of Government Efficiency” (D.O.G.E.) after internet users suggested it. He initially planned to call it the “Government Efficiency Commission,” but the community proposed adding “DOGE,” which ultimately influenced his decision.

In addition, Musk clarified that the U.S. government has no plans to use Dogecoin or any other cryptocurrency in its operations. 

The department’s primary mission is to improve government efficiency, not to integrate digital assets. Specifically, it aims to reduce costs and enhance the performance of public institutions, rather than engage with crypto.

Related: Lawmaker Attacks Trump’s Meme Coin, Musk’s DOGE

Community Reaction to Elon Musk’s Statement

After Elon Musk denied any link between Dogecoin and the newly formed federal department, the meme coin’s price fell by 3%. His statement seemed to dash the hopes of investors who were anticipating potential government adoption of Dogecoin.

The crypto market frequently reacts to Musk’s remarks, although such price swings tend to be short-term.

Furthermore, Musk has also faced accusations of market manipulation, with critics claiming he uses public statements to influence prices. Some speculate that insiders may have had early knowledge of the announcement and used it to open short positions on Dogecoin.

Related: Will Dogecoin Ever Reach 1$ with Elon Musk’s Push?

What Is D.O.G.E. and What Does It Do?

D.O.G.E. (Department of Government Efficiency) is a new initiative aimed at reducing government spending and improving operational efficiency across U.S. federal agencies. Announced by President Trump and Elon Musk, the department is expected to focus on cutting costs and restructuring federal operations, including large-scale layoffs at agencies like USAID and the IRS. 

However, these measures go beyond boosting efficiency. They also involve significant budget cuts, which have already sparked criticism and legal challenges.

And now it’s official: despite the rumors and speculation, D.O.G.E will not use the meme coin Dogecoin. The coin’s 3% drop following Musk’s statement once again highlights how his comments continue to influence the crypto market and investor sentiment.