The price of Dogecoin (DOGE) has seen a decline of more than 5% after Elon Musk, a prominent supporter of the cryptocurrency, clarified that the U.S. government has no plans to incorporate Dogecoin into any of its operations.
Musk’s comments, made during a town hall in Wisconsin, dashed the hopes of many Dogecoin investors who had anticipated a surge in price. Investors had been optimistic that the digital currency might benefit from a potential connection with the newly established Department of Government Efficiency (D.O.G.E.), a federal agency whose name sparked rumors of a link to Dogecoin.
“There are no plans for the government to use Dogecoin for anything as far as I know,” Musk stated, putting an end to speculation that the government might officially adopt the cryptocurrency. This announcement led to a sharp drop in DOGE’s price, which fell by over 5.3% within hours.
At the time of writing, Dogecoin was trading at approximately $0.1658, down from a daily high of $0.1695 and reaching a low of $0.1605.
The rumors surrounding Dogecoin’s potential government use began in February, when the official D.O.G.E. website featured the Shiba Inu logo, the same emblem associated with Dogecoin. This led some investors to believe that the government agency might be planning to incorporate the cryptocurrency into its operations.
While Musk has previously hinted at the possibility of using blockchain technology within government functions, including the U.S. Treasury’s processing of transactions, he made it clear this weekend that there was no connection between Dogecoin and the Department of Government Efficiency.
“The names are similar, but they’re doing two very different things,” Musk said, putting an end to speculation that Dogecoin would play a role in any federal operations.
As the rumors fade, it remains to be seen how Dogecoin’s market will respond moving forward.
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