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Musk says that his new party will support Bitcoin and labels fiat currency as "hopeless"

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Investing.com - Elon Musk said on Sunday night that his newly launched America Party will support Bitcoin, criticizing fiat currency as "hopeless," while intensifying his critiques of the U.S. government's fiscal policies amid a growing rift with President Donald Trump.

"Fiat currency is hopeless, so yes," Musk wrote on the social platform X on Sunday night, in response to a user asking if his political movement would adopt Bitcoin.

Fiat (BIT:STLAM) is currency issued by the government that is not backed by a physical product like gold. Its value comes from the government's declaration that it must be accepted as legal tender. The U.S. dollar is a fiat currency.

The comment came a day after Musk formally announced the formation of the America Party, which he claims aims to challenge the U.S. two-party system and restore "freedom" by controlling waste and government deficits.

This move comes amid an increasing dispute with Trump, who recently signed a massive spending bill that Musk had harshly criticized as a "repugnant abomination."

Trump responded on Sunday, calling the America Party initiative "ridiculous" and stating that Musk "had gone out of control."

Previously, Musk led a government efficiency initiative known as the Department of Government Efficiency (DOGE), focused on reducing federal spending.