Elon Musk Declares Fiat ‘Hopeless,’ Says America Party Will Embrace Bitcoin

Elon Musk’s newly launched America Party has put Bitcoin at the center of its political identity, with the multi-billionaire describing fiat currency as “hopeless” and aligning the party’s platform with calls for radical fiscal reform.

Fresh from announcing the formation of the America Party last Saturday, Elon Musk appeared to align the alpha crypto with his new party’s objectives.

“Fiat is hopeless, so yes,” Musk tweeted in response to a question on whether the party would “embrace” Bitcoin.

The party plans to field candidates in the 2026 midterms, targeting key congressional seats instead of mounting a presidential run. Musk’s statements come as U.S. national debt continues to climb and political gridlock over deficit spending has intensified.

But observers noted that Musk’s positions often blur the line between serious policy and provocation.

With Musk, “there’s always a chance that something that was said in the heat of the moment never sees the light of day,” Luis Buenaventura, head of crypto at Southeast Asian finance super-app GCash, told Decrypt, noting that Musk’s vocal opposition to raising the debt ceiling aligns with his latest sentiments on fiat.

Still, Musk appears to have “a real intention of taking it seriously, and experience in doing so,” argues Philipp Zentner, founder and CEO of bridge and DEX aggregation protocol LI.FI.

“He was successful in getting Trump elected, has the means to push it, and has seen from the inside all the things that are problematic with the two-party system,” Zentner told Decrypt, adding that Musk “seems eager to change it.”

Bitcoin as fiscal reform

Earlier this month, U.S. President Donald Trump escalated his feud with Elon Musk by targeting the Department of Government Efficiency, or DOGE, an agency Musk helped create.

Trump accused Musk of relying on billions in government subsidies and called for an investigation into his companies, a month after their breakup.

In a statement shared with Decrypt, a White House spokesperson dismissed the potential impact of Musk’s America Party, stating that the Republican party is “stronger than ever and in lockstep with the Trump agenda,” and arguing that “As the leader of the Republican Party, President Trump has unified and grown the party in a way we’ve never seen.”

While Musk’s so-called America Party hasn’t released a detailed digital asset policy, its early stance, as espoused by Musk, appears to position Bitcoin as a form of counter-monetary policy.

“If the America Party pursues austerity policies involving broad spending cuts, this could negatively affect Bitcoin, which typically thrives during monetary expansion or when currency debasement is expected,” Mike Eli, founder of crypto perpetuals analytics platform Coinperps, told Decrypt.

Bitcoin proponents “always believed that Bitcoin is fiscal reform,” Buenaventura said, adding that the association with “a high-profile political party” emphasizes that belief.

Few alternatives remain viable for those critical of fiat monetary expansion, Buenaventura argued.

“If not Bitcoin, what other options are there? It’s too late to re-peg the dollar to reality, and synthesizing a new global reserve currency from scratch is politically infeasible,” he said.

Tomas Fanta, Principal at crypto-native venture capital firm Heartcore Web3, echoed this, saying that Bitcoin “is already on its path to becoming well accepted as a decentralized alternative to gold.”

But while this is the case, “Elon’s embrace of BTC instead of fiat as one of the central policy changes pursued by his party is a soundbait,” Fanta told Decrypt.

Despite this, Fanta said Musk is “correct that fiat is experiencing cost to holders through debasement,” a factor that makes Bitcoin “an appropriate alternative to retain purchasing power.”

Tesla and SpaceX together hold nearly 19,800 BTC worth roughly $2.1 billion, according to data from Bitcoin Treasuries. Bitcoin traded around $108,600 at press time, with open interest at $74.86 billion, per data from Coinperps.