Elon Musk has clarified that his new government department, despite its playful name, will not be using Dogecoin.

The confusion began after the department’s official website briefly displayed Dogecoin’s Shiba Inu mascot in February 2025, which caused speculation that the cryptocurrency might be involved. The value of Dogecoin surged by 14% after the display, but Musk quickly distanced the government department from the crypto token.

“We’re just literally trying to make the government 15% more efficient, which the internet is furious about,” Musk said in a statement. “They’re saying we should be making it 50% smaller, but we’re starting small.” He added that Dogecoin was not part of the initiative and that people were ‘reading too much into it.’

The Trump administration’s DOGE, launched in late 2024, has been tasked with restructuring government agencies and reducing costs. It has been particularly focused on cutting spending and eliminating unnecessary regulatory overlap. Some of the agencies affected include the U.S. Agency for International Development (USAID) and the Consumer Financial Protection Bureau (CFPB).

The department’s efforts to reduce the size and cost of the federal government have been controversial, with several lawsuits filed in response to the mass layoffs and budget cuts, which also impacted programs addressing climate change and scientific research.

Musk explained that the name of the department came from suggestions on the internet. Originally planning to call it the Government Efficiency Commission, he opted for the DOGE name after public input.

“The internet said it needs to be the Department of Government Efficiency, not a commission. So we're making it a department. And people said that's too boring, it needs to be called DOGE. So we're calling it DOGE. Because we can,” Musk said, adding that the playful name had led to further speculation that Dogecoin might play a role in the department, which he fully denied.

"Now there's rumors that we'll be accepting Dogecoin for taxes or something like that, which is completely false. It's just a small good faith effort to make government more efficient and less costly, and leave the unserious matters to the people."

Despite Musk’s statements, Dogecoin's value fell by 3.2% in the 24 hours after the clarification, dropping to $0.16. This came after the earlier surge when the Shiba Inu mascot was briefly shown on the DOGE website.

While Musk’s role in the department remains unclear, the White House has described him as a senior advisor without policymaking power. However, President Trump has repeatedly referred to Musk as the department's leader. Musk has also confirmed that he is not receiving compensation for his involvement in the project. The department’s larger goal is to reduce the federal government’s size and make it more cost-effective, a mission that has become a central part of Trump’s administration.