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Coinbase CEO Brian Armstrong has commented on the
establishment of the Department of Government Efficiency (DOGE), led by Elon
Musk and Vivek Ramaswamy.
Although the agency’s acronym coincides with Dogecoin, there
is no connection to the memecoin. However, Dogecoin’s value briefly surged to a
yearly high following the announcement, reflecting its association with Elon
Musk.
Announcing DOGE Agency Leadership
On August 20, US President-elect Donald Trump mentioned the
possibility of Musk joining his cabinet or taking on an advisory role in
January 2025, without specifying a particular position. The agency was
officially announced on November 13 by Trump.
It is tasked with reducing federal spending, cutting
regulations, and restructuring government operations. Tesla CEO Elon Musk and
entrepreneur Vivek Ramaswamy will lead the department.
Armstrong views DOGE as an opportunity to promote economic
freedom and improve government efficiency. In a November 17 post on X, he
described it as “a once-in-a-lifetime opportunity to increase economic
freedom in the US and cut the size of government back to health.”
. @DOGE is a once in a lifetime opportunity to increase economic freedom in the U.S. and cut the size of government back to health.The founding fathers were geniuses but (with humility) may have missed the adverse incentives which grow the size of democratic government over…
— Brian Armstrong (@brian_armstrong) November 17, 2024
Proposed Spending Cap and Sovereign Fund
Armstrong proposed a constitutional amendment to cap
government spending at 10% of gross domestic product, arguing it would
prevent excessive expenditure and ensure fiscal discipline over the long term.
The Coinbase executive also suggested creating a sovereign
wealth fund, where US citizens could hold stakes and receive dividends from
budget surpluses. Armstrong believes this system would give citizens a vested
interest in government efficiency.
Political Factors Fuel Dogecoin Rally
Dogecoin (DOGE), originally launched in 2013 as a meme-based
cryptocurrency by Billy Markus and Jackson Palmer, has changed into one of the
most influential digital assets.
Initially a parody of Bitcoin, Dogecoin’s value skyrocketed
in 2021, reaching an all-time high of $0.73, driven by social media hype and
Elon Musk’s tweets. In
2024, the coin surged again by 350% following Donald Trump’s presidential win
and Musk’s leadership role in a government agency called DOGE, as reported by
Finance Magnates.
Recently, Dogecoin’s
price reached $0.3292, becoming the sixth-largest cryptocurrency by market
value, with a remarkable 152% gain in the last month. Political catalysts,
such as Trump’s pro-crypto stance, have energized the crypto market, boosting
Dogecoin’s value.
The broader market is also experiencing growth, with Bitcoin
reaching new highs. Economic instability and increasing institutional crypto
acceptance are contributing to the surge, as investors seek alternative assets
amidst global uncertainty.
This article was written by Tareq Sikder at www.financemagnates.com.
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