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- Elon Musk clarified that the U.S. government has no plans to use Dogecoin.
- The Department of Government Efficiency (DOGE) aims to improve efficiency, not adopt cryptocurrency.
- DOGE has faced controversy over layoffs, funding cuts, and legal challenges.
Elon Musk spoke at a town hall in Green Bay, Wisconsin. He addressed speculation about the Department of Government Efficiency (DOGE) and its connection to Dogecoin. He made it clear that the government has no interest in using cryptocurrency.
Musk attributed the name DOGE to public opinion. He had originally planned on naming it the Government Efficiency Commission. Public comments, however, pointed him toward DOGE. He concurred it was a better name.
Nevertheless, some equated the department with Dogecoin. In February, the DOGE site had the Dogecoin’s Shiba Inu mascot for a short period. This fueled speculation that the government would introduce cryptocurrency. As a result, the price of Dogecoin went up by 14% before stabilizing.
Trump’s Push for Government Cuts
It is part of President Donald Trump’s larger campaign of reducing the government’s expenditure. In late 2024, DOGE was initiated with the aim of cutting inefficiency and reorganizing agencies. Its proponents believe it will save the taxpayer and make the operation streamlined.
Critics, on the other hand, say that it has brought about destructive budget cuts. Several government programs have been affected. Climate change programs, scientific research, and diversity programs have had their funds significantly reduced.
Some of the agencies at the federal level also experienced layoffs. The U.S. Agency for International Development (USAID) and the Consumer Financial Protection Bureau (CFPB) lost staff and funds. Even the Social Security Administration (SSA) had some layoffs.
These changes have also attracted legal action. Several suits have been filed, contending that DOGE is exceeding its authority. Its critics say that its actions subvert critical governmental functions and harm public services.
Musk’s Role in DOGE Remains Unclear
The role of Musk remains unclear. The White House describes him as a senior advisor with no direct influence on policy. Trump has, however, referred to him openly as the leader of DOGE. Musk insists he is not being paid for his work with the department. Despite his immense influence, he denies any control of the government’s policy.
His words did not win everyone over. Some see his entry as a bid to reform the functions of the federal system on the basis of his entrepreneurial ideology. His history with Dogecoin has also been controversial. In 2023, the SEC investigated him for alleged market manipulation.
His history of supporting the cryptocurrency has brought on volatile price swings. His remarks this time did not make much of a difference. Dogecoin has dropped 3.3% in the past 24 hours. The initial surge from the site picture has faded.
DOGE remains under the scanner. Public pressure and legal suits may slow down its development. Whether it will achieve its goal of a 15% improvement remains questionable. Its future remains questionable at the moment.
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