The Boring Company currently operates the LVCC Loop in Las Vegas, which carries passengers at 56kph (35mph) between three stations beneath the Nevada city.
Expansion plans for the transport network were appoved last year by Clark County Commissioners, which will see it extend to a 29-mile tunnel system connecting 51 stations throughout Las Vegas.
It is currently free to ride the Loop, though rides will eventually cost between $1.50 and $2.50, which will be payable using the meme-inspired cryptocurrency.
The decision to accept dogecoin payments follows similar moves by Mr Musk’s other companies, SpaceX and Tesla.
The tech billionaire has been a vocal advocate of the cryptocurrency in recent years, revealing last month that he is still buying it despite a 90 per cent price crash since 2021.
It is the only cryptocurrency that any of his companies currently accepts, having withdrawn support for bitcoin last year due to environmental concerns. He has also claimed that dogecoin is more suitable as a mainstream currency compared to bitcoin.
“Even though it was created as a silly joke, dogecoin is actually better suited for tranactions,” he told Time magazine last year. “It is slightly inflationary, but that’s actually good as it encourages people to spend rather than to hoard it as a store of value.”
Supporting Doge wherever possible
— Elon Musk (@elonmusk) July 6, 2022
In a separate interview on the app Clubhouse, Mr Musk also suggested that dogecoin could be used as an official currency on any future Mars colonies, or even on Earth.
“Fate loves irony,” he said. “The most entertaining outcome is often the most likely. And arguably the most entertaining outcome, and most ironic outcome, would be that dogecoin becomes the currency of Earth in the future.”