Tesla Just Launched ‘MuskCoin’ — Elon Musk Claims It Could Replace the U.S. Dollar Within 5 Years
Austin, TX – July 17, 2025
In a dramatic and highly controversial announcement, Tesla Inc. has launched a proprietary digital currency called MuskCoin, with CEO Elon Musk stating that the coin could “replace the U.S. dollar as the world’s primary currency” within the next five years.
The announcement came during Tesla’s annual Innovation Summit held at its Gigafactory headquarters in Austin, Texas. While the company had hinted in recent months at integrating blockchain technology into its ecosystem, few expected such a bold and disruptive declaration from Musk.
“The financial system is outdated, inefficient, and exclusionary,” Musk said to a crowd of investors and press. “With MuskCoin, we’re introducing a decentralized, borderless, and programmable currency designed for the future — not the past.”
What Is MuskCoin?
According to Tesla’s white paper released this morning, MuskCoin is a blockchain-based digital token built on a proprietary high-speed ledger, separate from Ethereum or Bitcoin. The coin is backed by Tesla’s renewable energy assets and will initially be used for purchases within the Tesla and SpaceX ecosystems — including vehicles, solar products, and charging services.
In the future, MuskCoin could also be used for:
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Access to SpaceX commercial flight reservations
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B2B energy trading between Tesla Powerwall users
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Smart city integrations with The Boring Company
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Neuralink microtransactions for brain-interface apps
Tesla has not disclosed the total number of MuskCoins that will be minted, but noted that the token’s supply will be “finite, deflationary, and subject to hard-coded monetary rules.”
A Challenge to the Dollar?
Musk’s claim that MuskCoin could replace the U.S. dollar sparked immediate backlash from economists and government officials.
“No single company — even one as influential as Tesla — can simply declare itself the issuer of a global reserve currency,” said Columbia economist Dr. Sandra Liu. “That is a function of sovereign monetary policy, not Silicon Valley ambition.”
Nevertheless, Musk pointed to growing public distrust in centralized banks, inflation, and currency manipulation as the rationale for offering what he calls a “currency of the people.”
Regulatory Response
As expected, the U.S. Treasury Department issued a statement within hours of the launch, warning that MuskCoin would be subject to strict oversight.
“Any digital asset that seeks to function as legal tender or challenges existing monetary systems will be examined under current federal laws,” the statement read. SEC Chair Gary Gensler also confirmed the agency would “review all documentation and launch procedures to ensure full compliance.”
Market Impact and Public Reaction
Tesla stock (TSLA) surged 6.3% after the announcement, while Bitcoin and Ethereum saw sharp gains, indicating rising investor enthusiasm for digital assets. Meanwhile, early access to MuskCoin has been granted to verified Tesla owners, Powerwall subscribers, and long-term shareholders.
Within hours, over 2.8 million MuskCoin wallets were registered via Tesla’s new app, with servers reportedly overwhelmed by global demand.
As with most Musk-led ventures, public opinion remains deeply divided. But whether MuskCoin succeeds or falters, one thing is clear: Elon Musk is once again attempting to rewrite the rules of modern economics — and the world is watching.