Elon Musk America Party to Adopt Bitcoin, Calls U.S. Dollar “Hopeless”
Elon Musk has announced that his newly created political party—the America Party—will accept bitcoins as the payment option for donations. In response to a user on X (formerly Twitter), Musk said, “Fiat is hopeless, so yes.”
By making that brief statement, Musk moved his party away from the traditional system of finance while also putting it with those who argue for digital currency to offer alternatives to centralized currency and monetary policy.
A Political Movement Fueled by Crypto
Musk’s confirmation comes as he positions the America Party as a centerpiece alternative to the two-party system in the U.S.. The announcement came after a poll on X that went viral. With over 1.24 million people voting in it, nearly 66% of them want the new party. Billionaire Elon Musk took to Twitter to criticize the US political establishment, saying that the country requires a party that truly cares about the people.
Musk’s crypto leanings are no secret. Tesla is one of the first major companies that took Bitcoin. The firm officially took a $1.5 billion position in early 2021. It presently holds over 11,500 BTC worth roughly $1.26 billion. As a result, Tesla is the ninth-largest company in the world to hold Bitcoin publicly.
Even though Tesla let users buy its cars in bitcoin, it suspended use of the crypto, citing environmental reasons. Notwithstanding his ban, Musk has always been a crypto advocate; he has tweeted for Dogecoin, and the price frequently jumps or crashes in response to his tweets.
Musk and Trump Are Divided on Crypto
Musk has made this announcement as tensions escalate between him and Trump. Tensions began heating up over Trump’s proposal for “One Big Beautiful Bill,” which Musk referred to as “crazy and destructive,” predicting that it would increase the deficit by $3.3 trillion. Musk criticized the legislation, stating it would cost millions of jobs in the country and cause “immense strategic harm.”
“While Trump’s plan to pay off the national debt is a joke, his additional five billion to the federal deficit is not,” Colvin said. Musk’s inclination to start a new party arose from these ideological rifts.
Trump called Musk a “top Republican” for allegedly trying to split the GOP vote before the 2026 U.S. midterms. But some political analysts and crypto-adoring folk reckon Musk’s technical, alternative establishment message could attract youngsters, independents, and crypto romantics.
Is Cryptocurrency Reshaping the Political Landscape?
The America Party is promoting itself as a party of the future by embracing Bitcoin and rejecting fiat currency. The America Party will take in donations of cryptocurrency, an in-kind contribution under existing Federal Election Commission (FEC) rules on donation taking.
According to Jan3 founder Samson Mow, if Musk actively promoted Bitcoin, he may gain a political advantage. In addition, Jan3 wants Tesla and SpaceX to accept Bitcoin payments again with a discount.
Although he (Musk) has previously criticized Bitcoin for its price volatility and has said (in the past) that it is not feasible for use on Mars due to speed, he is now convinced that technologies like the Lightning Network can solve these problems.
Effect of Market Event on Dogecoin and Bitcoin
Musk’s ties to politics and crypto already have markets buzzing. After the news was revealed on Wednesday, Dogecoin jumped by more than 5%. The total trade value went over $1.1 Billion. Meanwhile, Bitcoin holds steady at above 108,000 dollars, with speculators looking to geopolitical factors as the next catalyst to boost BTC’s momentum.
With inflation worries, Federal Reserve uncertainty, and now political crypto endorsements, the America Party could represent a turning point for blockchain in U.S. politics.
