Elon Musk clarified that the U.S. government has no intention of adopting Dogecoin, despite rumors sparked by the creation of the Department of Government Efficiency (DOGE).
Elon Musk clarified that the U.S. government has no intention of adopting Dogecoin, despite rumors sparked by the creation of the Department of Government Efficiency (DOGE). Speaking at a town hall in Green Bay, Wisconsin, Musk emphasized that the department and the meme coin were not connected. "There are no plans for the government to use Dogecoin or anything as far as I know," Musk stated, explaining that although the names were similar, their purposes were very different. The focus of DOGE was simply to make the government more efficient, he added.
The confusion began after the department’s official website briefly displayed Dogecoin’s Shiba Inu mascot in February 2025, which caused speculation that the cryptocurrency might be involved. The value of Dogecoin surged by 14% after the display, but Musk quickly distanced the government department from the crypto token. “We’re just literally trying to make the government 15% more efficient,” he said, reinforcing that Dogecoin was not part of the initiative.
The Trump administration’s DOGE, launched in late 2024, has been tasked with restructuring government agencies and reducing costs. It has been particularly focused on cutting spending and eliminating unnecessary regulatory overlap. Some of the agencies affected include the U.S. Agency for International Development (USAID) and the Consumer Financial Protection Bureau (CFPB). The department’s efforts to reduce the size and cost of the federal government have been controversial, with several lawsuits filed in response to the mass layoffs and budget cuts, which also impacted programs addressing climate change and scientific research.
Musk explained that the name of the department came from suggestions on the internet. Originally planning to call it the Government Efficiency Commission, he opted for the DOGE name after public input. "The internet said it needs to be the Department of Government Efficiency," he recalled. This playful name had led to further speculation that Dogecoin might play a role in the department, which Musk has now fully denied.
Despite Musk’s statements, Dogecoin's value fell by 3.2% in the 24 hours after the clarification, dropping to $0.16. This came after the earlier surge when the Shiba Inu mascot was briefly shown on the DOGE website.
While Musk’s role in the department remains unclear, the White House has described him as a senior advisor without policymaking power. President Trump, however, has referred to him as the department’s leader. Musk has also confirmed that he is not receiving compensation for his involvement in the project. The department’s larger goal is to reduce the federal government’s size and make it more cost-effective, a mission that has become a central part of Trump’s administration.
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