Elon Musk announced the formation of a new political party on Sunday and told one of his followers on X that the party would embrace Bitcoin because "fiat is hopeless."

Elon Musk, CEO of Tesla and tech entrepreneur, confirmed that his newly formed political party - the American Party - would accept Bitcoin.

"Fiat is hopeless, so yes," Musk responded 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 this currency, having held 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 bitcoins, 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, leading to fluctuations in its price following his tweets.

Samson Moe, founder of Jan3, stated that adopting Bitcoin could give Musk an advantage over Trump in their ongoing dispute.

Moe noted that Tesla should start accepting Bitcoin as a payment method again and that Musk's SpaceX should offer discounts for those who pay with it.

In 2024, Musk rejected the idea of using the Bitcoin network as a payment method on Mars. However, Musk later agreed to the idea, stating that a local lightning network could solve the slow transaction problem.

Musk's feud with Trump

Musk's relationship with Donald Trump deteriorated over the "Big Beautiful One" bill, which Musk previously described as "insane and utterly destructive," arguing it would lead to the erosion of millions of jobs in the United States and cause "huge strategic harm" to the country.

The bill is expected to add $3.3 trillion to the national debt over the next decade.

Musk questioned Trump's justifications for creating the "DOGE" initiative, aimed at reducing the 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 establishment of an American party after more than 1.24 million people voted in his poll about forming the party, with nearly two-thirds of voters supporting the new party.

Musk added: "When it comes to the bankruptcy of our country due to extravagance and corruption, we are living in a one-party system, not in a democracy."

Since then, 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