$DOGE Drops Sharply as Elon Musk Says "No Plans" to Use Dogecoin

Dogecoin (DOGE) has fallen more than 5% as former supporter and meme connoisseur Elon Musk stated that the U.S. Government has no plans to use Dogecoin in any activities with the Office of Management and Budget. While Dogecoin investors (DOGE) expect the price of this coin to rise beyond last week's increase, their hopes have turned into disappointment as Elon Musk announced that the federal government has no plans to officially use DOGE. In a speech at a hall in Wisconsin, Musk effectively quelled speculation that the Government Efficiency Department (DOGE) would not integrate Dogecoin into any government transactions. This move caused the price of DOGE to plummet, falling more than 5.3% in a few hours. Musk said: "As far as I know, the government has no plans to use Dogecoin for any purpose," in response to rumors that the newly established efficiency department of the Trump administration (DOGE) might adopt this cryptocurrency. At the time of writing, DOGE is trading at around $0.1658 while falling to a low of $0.1605 from a daily high of $0.1695 in the daily timeframe.

Rumors about the possibility of Dogecoin being accepted by the government have been fueled by an incident in February when the official DOGE website displayed the iconic Shiba Inu logo resembling the Dogecoin logo. This move sparked excitement among investors as many believed it was a sign of a connection between the government agency and Dogecoin. Additionally, Musk has previously hinted at the possibility of using blockchain technology in government operations, even suggesting that the U.S. Treasury could process transactions on the blockchain. However, Musk made it clear over the weekend that there is no connection between Dogecoin and the Government Efficiency Department. "The names are similar, but they serve two very different functions," he explained, dashing hopes that Dogecoin would play a role in the operations of the federal agency.