Elon Musk has hinted at the potential use of Dogecoin as a payment method for Starlink services in Brazil following a financial freeze imposed on the company's bank accounts by the Brazilian Supreme Court.
The Brazilian Supreme Court recently froze Starlink’s bank accounts, a move attributed to two issues: the absence of a legal representative for X (formerly Twitter) in Brazil and unpaid fines related to the platform’s failure to submit required documents. Despite this, Musk has pledged that Starlink will continue to provide free internet services to the Brazilian military and other users affected by the freeze.
In response to a suggestion on social media, Musk acknowledged the idea of using Dogecoin to navigate the financial constraints. “Hmm … you make a good point,” he remarked on X, indicating that the meme cryptocurrency could offer a solution to the payment issues caused by the court’s decision.
SpaceX, which operates Starlink, has over 250,000 customers in Brazil, including small businesses, schools, and emergency services. Despite the legal challenges, SpaceX is working to ensure that internet services remain uninterrupted. Musk has criticised the court's actions, describing them as "absolutely illegal" and unjustly punitive towards SpaceX shareholders, given the distinct separation between SpaceX and X.
Read more: Brazil's Supreme Court threatens to shut down X if Elon Musk doesn't comply with censorship demands within next 24 hours (Twitter)
Musk’s Influence on Dogecoin: Price Spikes and Legal Victory Amid Market Movements
Musk’s involvement with Dogecoin has historically influenced the cryptocurrency’s market movements. Recent endorsements and social media activity by Musk have led to notable price spikes for Dogecoin. Earlier this month, an AI-generated image referencing Dogecoin posted by Musk on X led to a surge in its value.
Additionally, Musk and Tesla recently won a federal lawsuit dismissal related to accusations of insider trading and market manipulation of Dogecoin. U.S. District Judge Alvin Hellerstein ruled that no reasonable investor could rely on social media posts for securities fraud claims, resulting in the dismissal of the lawsuit with prejudice.
Read more: Elon Musk and Tesla are cleared of Dogecoin manipulation charges, what's next for Dogecoin?
If implemented, Dogecoin payments for Starlink services could provide an alternative revenue stream amidst the ongoing legal disputes. It would also align with Musk’s previous practices of integrating cryptocurrencies into his business ventures.
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