Elon Musk has denied rumors suggesting that the U.S. government plans to use Dogecoin, following confusion sparked by the creation of the Department of Government Efficiency (DOGE). Speaking at a town hall in Green Bay, Wisconsin, Musk clarified that the department has no connection to the cryptocurrency. “There are no plans for the government to use Dogecoin or anything as far as I know,” Musk said, explaining that while the names are similar, their purposes are very different.
The Origin of the Confusion
The speculation about Dogecoin’s involvement began when the DOGE department’s official website briefly displayed the cryptocurrency’s Shiba Inu mascot in February 2025. This led some to believe the government was planning to use the meme coin. Following the brief appearance of the mascot, Dogecoin’s value surged by 14%. However, Musk quickly distanced the cryptocurrency from the department’s activities. “We’re just literally trying to make the government 15% more efficient,” he stated, reiterating that Dogecoin was not part of the initiative.
The Department’s Mission and Focus
Launched in late 2024 under the Trump administration, DOGE was created to streamline government operations and reduce costs. Its efforts have focused on cutting spending, eliminating redundant regulations, and restructuring agencies such as the U.S. Agency for International Development (USAID) and the Consumer Financial Protection Bureau (CFPB). These changes, however, have sparked controversy, including lawsuits over mass layoffs and budget cuts, particularly in areas related to climate change and scientific research.
Name Choice Sparks Further Speculation
Musk explained that the department’s name, DOGE, was the result of internet suggestions. Initially called the Government Efficiency Commission, the name was changed to DOGE after public input. “The internet said it needs to be the Department of Government Efficiency,” Musk recalled. This playful name led to further speculation about a potential connection to Dogecoin, which Musk has now fully denied.
Dogecoin’s Response and Musk’s Role
Despite Musk’s clarification, Dogecoin’s value dropped by 3.2% in the 24 hours following his comments, falling to $0.16. This decline came after the earlier spike in value following the mascot’s brief appearance on the department’s website.
While Musk’s exact role in the department is still unclear, the White House has referred to him as a senior advisor without policymaking power. President Trump, however, has called Musk the leader of the department. Musk has also confirmed that he is not receiving any compensation for his involvement in the project, which aims to reduce the size and cost of the federal government, a key goal of the Trump administration.
