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The most notable figure in Donald Trump's second administration is undoubtedly Elon Musk, the CEO of Tesla. Musk is leading the 'Department of Government Efficiency (DOGE)' in the Trump administration, focusing on improving government operational efficiency and cutting federal budgets.

Musk's Department of Government Efficiency has attracted significant attention from the virtual asset (cryptocurrency) industry since its inception. The abbreviation 'DOGE' for the Department of Government Efficiency reminds people of the popular meme coin 'Dogecoin (DOGE)', which Musk has long supported. In fact, Dogecoin rose by more than 16% recently when the Dogecoin logo was posted on the Department of Government Efficiency's website.

The phenomenon of Dogecoin's price moving according to Musk's actions has been around for quite some time. Musk, who calls himself the 'Doge Father' and has become a prominent pro-cryptocurrency figure in the Trump administration, has a long-standing relationship with Dogecoin.

"DOGE, my favorite coin"... Self-proclaimed 'Doge Father' Musk

Musk first mentioned Dogecoin directly in April 2019. At that time, he stated on his X (formerly Twitter), "Dogecoin is my favorite cryptocurrency" and "It's really cool." Since then, he has mentioned Dogecoin several times on X. According to Decrypt, whenever Musk tweeted about it between 2019 and 2020, Dogecoin's search volume surged.

On May 7, 2021 (local time), Dogecoin soared to an all-time high due to news of Musk's appearance on SNL. Before his SNL appearance, he hinted at mentioning Dogecoin by posting a composite photo with the Dogecoin mascot on his X, and on the SNL broadcast on the 8th, he introduced himself as the Doge Father.

However, contrary to expectations, Dogecoin plummeted by nearly 30% after Musk's SNL broadcast. At the time, CNN speculated that the cause of this crash was Musk's remarks that shattered investors' expectations. Investors hoped Musk would express support for Dogecoin on SNL, but he called Dogecoin a 'hustle.' Some analysts also suggested that the excessive mockery of Dogecoin on the broadcast might have contributed to the price drop.

On May 10, 2021, before the aftermath of SNL had subsided, Musk announced a collaboration between SpaceX and Dogecoin. He planned a lunar exploration satellite called 'Doge-1' to be paid for entirely with Dogecoin. Upon the announcement of this plan, Dogecoin surged by about 20%.

In December 2021, Dogecoin was allowed as a payment method for some Tesla products. This decision led to Dogecoin rising by nearly 15%. At the time, Bitcoin was excluded from Tesla's payment methods due to high carbon emissions during mining, drawing more attention.

In May 2022, Musk continued his support for Dogecoin by stating that he would consider allowing Dogecoin as a payment method for SpaceX's internet service 'Starlink' subscription fees in the future. Following his remarks, Dogecoin, which had been in a bearish trend, rose by about 10%.

Doge Father becomes a 'key figure' in the Trump administration... Focus on pro-cryptocurrency actions

Musk, who has consistently shown 'sincerity' towards Dogecoin, has now become a key figure in the Trump administration. From his first day in office, President Trump renamed the 'U.S. Digital Service', a presidential agency, to the 'U.S. Doge (DOGE) Service' through an executive order and installed DOGE in the Oval Office.

Currently, Musk's DOGE is exerting more influence than expected. Since the launch of Trump's second administration, it has already reviewed key materials from several federal agencies and investigated budget expenditures, leading to significant personnel and expenditure cuts.

According to the New York Times (NYT) on the 1st (local time), DOGE and its associates have gained access to the Treasury's payment system, which controls annual federal budget expenditures of $5 trillion. The U.S. Treasury payment system handles information for millions of Americans receiving pensions, tax refunds, salaries, etc., from the federal government, and gaining access to it is considered to have acquired substantial authority.

Some are concerned that Musk might overstep his authority, but President Trump defended Musk at a White House press conference, saying, "I think Elon is doing a good job," and also stated that he would not unilaterally halt government budgets without White House approval.

Attention is focused on what actions Musk, who has gained wings through Trump, will take in the U.S. government. Recently, Bloomberg reported, citing sources, that DOGE is currently exploring ways to utilize blockchain to enhance U.S. government efficiency. It is known that they have met with representatives of several public blockchains to evaluate the technology they possess.

Of course, it is not yet known which blockchain will be used, and the possibility of the plan being scrapped cannot be ruled out. However, Bloomberg raised expectations by stating that if DOGE pursues the plan, "it is likely to be the largest government project ever seen in the U.S."

The impact on the virtual asset market is also noteworthy. Kim Dong-hyuk, a researcher at Dispread, said, "If Musk's DOGE introduces public blockchain into government operations, the related blockchain and virtual assets are expected to benefit greatly," but added, "However, the actual possibility of adoption may be low, and there is a high possibility that a consortium blockchain rather than a public blockchain will be applied."

Soo-hyun Lee, Bloomingbit Reporter shlee@bloomingbit.io