Coinbase CEO Backs DOGE Agency Led by Elon Musk as Dogecoin Surges

2024-11-20 10:28:04 Primitive Reading

From financemagnates by Tareq Sikder

Anthony Harvey/Getty Images for TechCrunch

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.

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