Elon Musk Dismisses Dogecoin Use by U.S. Government, Price Drops 5%

Elon Musk has dismissed speculation that Dogecoin is linked to the U.S. government. He clarified that the Department of Government Efficiency (D.O.G.E.) has no plans to use the cryptocurrency. His remarks have had little impact on Dogecoin’s price, which has declined by more than 5% in the past 24 hours, according to CoinMarketCap.

Musk Chooses Name from Online Suggestions 

In February, rumors of a connection gained traction after the official website of D.O.G.E., the government efficiency initiative led by tech mogul Elon Musk, briefly displayed Dogecoin’s Shiba Inu logo. This fueled speculation and led to a 14% price surge, pushing Dogecoin’s market cap to $58 billion.

However, at a March 30 town hall in Green Bay, Wisconsin, hosted by his America PAC, Musk distanced the federal D.O.G.E. from the Dogecoin cryptocurrency.

🚨 ELON MUSK: “There are no plans for the government to use dogecoin or anything.

I was going to call it Government Efficiency Commission but that’s a super boring name. Then the internet said it needs to be Department of Government Efficiency. I was like Internet is right.” pic.twitter.com/5BLBQeN7dL

— DogeDesigner (@cb_doge) March 31, 2025

The tech billionaire explained that the department’s name was chosen based on online suggestions. He initially considered calling it the Government Efficiency Commission but found the name uninteresting. Ultimately, after seeing online recommendations for the Department of Government Efficiency, he decided it was a better fit.

The D.O.G.E

First revealed in August 2024, the D.O.G.E. initiative is central to President Donald Trump’s efforts to streamline the federal government. The project seeks to reduce spending, eliminate regulatory redundancies, and overhaul federal agencies.

Furthermore, the department has implemented widespread layoffs and reduced funding for climate change initiatives, scientific research, and diversity programs. Agencies impacted include the U.S. Agency for International Development (USAID), the Consumer Financial Protection Bureau (CFPB), and the Social Security Administration (SSA).

One of the key figures in this initiative is Elon Musk, whose role in the administration remains a point of contention. This involvement also fueled speculations of the agency implementing Dogecoin in its affairs. While the White House describes him as a senior advisor without direct policy-making power, Trump has referred to him as the department’s leader.

Despite the uncertainty over his official title, Musk has taken an active role in shaping the initiative. Meanwhile, in a recent interview, he stated that he plans to step down from the Trump administration once he achieves a $1 trillion reduction in the U.S. federal deficit. He believes this cost-cutting effort could be completed within 130 days, suggesting his involvement may conclude by the end of May.

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