Elon Musk announced the formation of a new political party on Sunday and told one of his followers on X that the party will embrace Bitcoin because "fiat currency is hopeless."
Elon Musk, CEO of Tesla and tech entrepreneur, confirmed that his newly formed political party - the American Party - will accept Bitcoin.
"Fiat is hopeless, so yes," Musk replied to an X user who asked if his new party would accept Bitcoin.
Musk's relationships with cryptocurrencies
Elon Musk is no stranger to Bitcoin, as Tesla was one of the early adopters of the currency, holding it in its treasury.
Under his leadership as CEO of Tesla, the company purchased $1.5 billion worth of Bitcoin in early 2021, making it one of the first publicly traded companies to hold it in its treasury.
Tesla currently holds 11,509 Bitcoin, worth approximately $1.26 billion, making it the ninth largest publicly traded company to hold it in its treasury, according to Bitbo.
The Tesla CEO has also supported Dogecoin over the years, causing its price to rise or fall after his tweets.
Samson Moe, founder of Jan3, stated that Bitcoin adoption could give Musk an advantage over Trump in their ongoing dispute.
Moe pointed out that Tesla should start accepting Bitcoin again as a payment method and that Musk's SpaceX should offer discounts to those who pay with it.
In 2024, Musk rejected the idea of using the Bitcoin network as a means of payment on Mars. However, Musk later agreed to the idea, saying that a local Lightning network could solve the slow transaction problem.
Musk's feud with Trump
Musk's relationship with Donald Trump deteriorated due to the "Big Beautiful One" bill, which Musk previously described as "crazy and completely destructive," arguing it would lead to the erosion of millions of jobs in the United States and cause "massive strategic harm" to the country.
The bill is expected to add $3.3 trillion to the U.S. national debt over the next decade.
Musk questioned Trump's justification for creating the "DOGE" initiative, aimed at reducing the U.S. national debt, if it would increase the national debt by trillions of dollars.
He later hinted that the United States needs a new political party that "truly cares about the people."
Musk announced on Sunday the founding of an American party after more than 1.24 million people voted in his poll about establishing the party, with nearly two-thirds of voters supporting the new party.
Musk added: "When it comes to our country's bankruptcy due to extravagance and corruption, we live in a one-party system, not in a democracy."
Since then, U.S. President Donald Trump has harshly criticized Musk for founding a third political party. Trump stated that Musk's new party could create a split in Republican votes in the 2026 U.S. midterm elections.
Cointelegraph