Elon Musk, the billionaire behind Tesla, is making waves in the world of cryptocurrency. His social media platform, X, might just shake up bitcoin prices.
Over the past year, bitcoin has seen a significant rise. This surge is thanks to a mix of factors, including Donald Trump's election win and growing acceptance on Wall Street. Plus, Musk has made headlines by declaring a "financial emergency."
Recently, leaks have suggested that Musk plans to use blockchain technology, inspired by bitcoin, to boost the efficiency of his new Doge department. According to Bloomberg, sources close to Musk say there have been discussions about using blockchain to track federal spending, secure data, make payments, and manage government properties.
It’s still unclear if Musk will use an existing blockchain—like those of bitcoin, ethereum, or dogecoin—or if he plans to create a new, specialized one. After Musk took over Twitter and rebranded it as X, he considered adding blockchain tech to the platform but ultimately decided against it, as revealed in text messages with his brother Kimbal back in 2022.
The Doge department is a nod to the famous shiba inu doge meme linked to dogecoin. Musk has called dogecoin his "favorite" cryptocurrency, and Tesla accepts it as payment. Since Trump’s election, dogecoin's value has skyrocketed alongside bitcoin. Traders believe Musk’s close ties to the president will further boost this meme-based cryptocurrency.
This week, Trump has made overhauling crypto policy a priority. He ordered the creation of a working group focused on new regulations and exploring a national cryptocurrency reserve. Venture capitalist David Sacks, an early investor in Solana, will lead this group. Trump has expressed confidence in Sacks, stating that his administration is committed to making the U.S. the "crypto capital" of the world. He even mentioned this at the World Economic Forum in Davos.