Musk Denies Dogecoin Link To U.S. Government Efficiency Department

Elon Musk has clarified that the U.S. government has no plans to adopt Dogecoin, despite speculation triggered by the formation of the Department of Government Efficiency (DOGE). Addressing a town hall in Green Bay, Wisconsin, Musk emphasized that the newly established department has no connection to the popular cryptocurrency.

“There are no plans for the government to use Dogecoin or any cryptocurrency, as far as I know,” Musk stated. He acknowledged the similarity in names but stressed that their functions were entirely different, with DOGE focusing solely on improving government efficiency.

Rumors linking Dogecoin to the department intensified after its official website briefly displayed Dogecoin’s Shiba Inu mascot in February 2025. The incident fueled speculation that the cryptocurrency might be involved, prompting a 14% surge in Dogecoin’s value. However, Musk swiftly distanced the government initiative from the digital currency. “We’re simply trying to make the government 15% more efficient,” he explained, reaffirming that Dogecoin played no role in the project.

Established by the Trump administration in late 2024, DOGE aims to restructure federal agencies and cut costs. The department has focused on reducing government spending and eliminating regulatory redundancies, affecting agencies such as the U.S. Agency for International Development (USAID) and the Consumer Financial Protection Bureau (CFPB). Its cost-cutting measures have sparked controversy, leading to lawsuits over mass layoffs and budget reductions impacting climate change programs and scientific research.

Musk revealed that the department’s name emerged from public suggestions, initially intended to be the Government Efficiency Commission. “The internet insisted it should be the Department of Government Efficiency,” he recalled. This unconventional naming further fueled speculation about Dogecoin’s involvement, a connection Musk has now firmly denied.

Despite his clarification, Dogecoin’s value declined by 3.2% in the 24 hours following his remarks, settling at $0.16. This drop followed an earlier surge when the Shiba Inu mascot appeared on the department’s website.

Musk’s exact role within DOGE remains ambiguous. While the White House has described him as a senior advisor without policymaking authority, President Trump has publicly referred to him as the department’s leader. Musk also confirmed that he is not receiving compensation for his involvement. The department’s overarching mission—downsizing the federal government and improving cost efficiency—has become a key component of Trump’s administrative agenda.