Electric car giant Tesla, led by billionaire CEO Elon Musk, has taken a crucial step towards accepting Dogecoin (DOGE) as a payment option. The company recently updated the Tesla Shop, its online store, to include DOGE alongside traditional payment methods.
This move marks an expansion of a limited experiment launched in January 2022, when Tesla began accepting DOGE for select merchandise, such as the Cyberwhistle and the Giga Texas belt buckle.
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The Limitations of DOGE Purchases
The recent update is exciting and expands the list of DOGE-compatible items. However, it excludes Tesla’s core product, electric vehicles. While the inclusion of DOGE represents a potential future direction for Tesla, Dogecoin payments are restricted to merchandise purchases on the Tesla Shop. This decision aligns with Musk’s previous statements regarding the initial rollout in 2022, which he characterized as an experiment.
However, Musk has hinted at a possible wider adoption of Dogecoin in the future. During a visit to Tesla’s Giga Berlin factory in March 2024, he acknowledged the possibility of accepting DOGE for car purchases. This sparked excitement within the Dogecoin community and caused a 10% price surge.
The recent expansion of products purchasable with Dogecoin has caused another price surge. At press time, Dogecoin was trading at $0.1626, up 17.42% over the past 24 hours. Dogecoin’s 24-hour trading volume has also exploded, up 91.4% at press time.
Potential Implications
Tesla’s decision to accept DOGE for merchandise is a major step toward a cryptocurrency-focused future. If Tesla eventually accepts DOGE payments for car purchases as Musk hinted, it could significantly impact the overall landscape of cryptocurrency use in the automotive industry. Musk disrupted the automotive industry by making electric cars a staple, and he could do the same for cryptocurrency payments.
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This move could also aid cryptocurrency regulations in the United States. Mass adoption by the population could weaken the SEC’s hand and reduce unnecessary lawsuits against blockchain companies. It could also cause Congress to push for proper crypto regulation, allowing companies to operate within the limits of the law without worrying about the SEC targeting them.
While the current implementation is limited, Tesla’s foray into DOGE payments is noteworthy. Elon Musk has always been an outspoken supporter of Dogecoin. With recent rumors that X is testing XRP payments, the billionaire could be expanding his reach to other cryptocurrencies.
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