Elon Musk’s Team Considers Using Blockchain Technology to Cut Costs and Eliminate Wasteful Spending in Government
Washington: Elon Musk’s Team Initiates Conversations about Using Blockchain Technology
WASHINGTON: Elon Musk has initiated conversations about using blockchain technology at the new department of government efficiency, according to people with knowledge of the discussions. It’s the latest sign of the Trump administration’s efforts to bolster the digital asset industry.
Musk’s Idea to Use Blockchain Technology
Musk, who heads the Doge effort, has mused to close allies about the idea of using a digital ledger as a way to squeeze costs out of the government, said one of the people, who asked for anonymity because the discussions haven’t been made public. There’s been talk of using a blockchain to track federal spending, secure data, make payments and even manage buildings, the people said.
Meetings with Public Blockchains
People affiliated with Doge have met with representatives of various public blockchains to evaluate their technology, a person with knowledge of the conversations said.
Representatives for the White House and Doge Unavailable for Comment
Representatives for the White House and Doge didn’t return separate requests for comment. Musk didn’t reply to an emailed request for comment.
The Trivia of Using Blockchain Technology in Government
The talks have a certain intuitive logic, given that the name of Musk’s department is a cheeky reference to a cryptocurrency, Dogecoin, that lives on its own blockchain. President Donald Trump has also been quickly putting in place cryptocurrency-friendly policies. On Thursday, he signed an executive order establishing a working group on digital assets that includes key members of his administration.
Created to Modernise Federal Technology and Software
Created by Trump’s Jan 20 executive order, Doge is charged with modernising federal technology and software to maximise government efficiency and productivity. Trump has said the group will work with the White House office of management and budget to identify spending cuts and finish its recommendations by July 4 2026.
Musk’s Team of 100 Volunteers
Musk enlisted about 100 volunteers before Trump was inaugurated to write the code for his projects, one person said.
The Blockchain: A Tool for Cost-Cutting and Fraud Prevention
The blockchain would be one of several technological tools that Musk and his team may try to use to cut costs and eliminate wasteful spending, fraud and abuse — a key issue Trump campaigned on in 2024. Trump has decried the country’s ballooning deficit, blaming much of it on programmes and policies initiated by his predecessor.
Public Blockchains: A Controversial Option
One person who travelled to Palm Beach, Florida, in December pitched to Trump transition officials on several ways a blockchain might be used, focusing on the technology’s potential to protect important government data and track flows of money.
The Blockchain Concept
The blockchain concept was first introduced by Bitcoin as a way to record and verify transactions of the digital token without a central authority. Since then, many other crypto projects have created their own blockchains for similar purposes, with most of them offering a public ledger that can be reviewed by anyone.
Unclear Which Blockchain Will Be Used
Trump’s business associates chose the ledger associated with the Solana cryptocurrency to issue the Trump and Melania memecoins that have drawn interest and criticism in recent days. It is, though, unclear which blockchain Musk’s team might use for its projects, and the talks may end up going nowhere.
Experts Weigh In
Sam Hammond, the chief economist at the Foundation for American Innovation, said that “an internal government blockchain could be used to track spending, documents and contracts in a way that’s fully secure and transparent.”
But, Hammond added, “the question is whether you really need a blockchain to do that, since conventional databases can be used in a similar way and with fewer downsides.”
Public Blockchains: A Double-Edged Sword
Public blockchains, like those used by Bitcoin and Solana, come with their own problems, given that such ledgers are governed by decentralised networks of computers.
Conclusion
While the idea of using blockchain technology in government is not new, applying it to an enterprise as large as the US government remains an untested concept. The outcome of these talks is uncertain, and it remains to be seen whether the technology will be used to cut costs and eliminate wasteful spending in government.
FAQs
Q: What is the purpose of the blockchain in government?
A: The blockchain would be used to track federal spending, secure data, make payments, and manage buildings, among other uses.
Q: What is the name of the department involved in this project?
A: The department is called Doge, which is charged with modernising federal technology and software to maximise government efficiency and productivity.
Q: Which blockchain technology is being considered for use in government?
A: It is unclear which blockchain technology will be used, as the talks are still ongoing.