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The Department of Government Efficiency (DOGE), led by Elon Musk, has reportedly held discussions about incorporating blockchain technology.
Musk, who now solely leads the department after Vivek Ramaswamy recently stepped down as a co-lead, has suggested using blockchain to reduce costs, streamline processes, and enhance transparency across government functions.
The confidential discussions include proposals to use blockchain for tracking federal spending, securing sensitive data, managing payments, and even overseeing government buildings.
Implementing this technology in such a manner could mark the most significant application of blockchain in US government history. Prior to DOGE, blockchain technology was used for rudimentary government tasks such as the California DMV’s use of the Avalanche blockchain for digitizing car titles.
DOGE’s main goals involve streamlining government operations by removing redundant structures, cutting down on excessive spending, restructuring agencies, and eliminating areas of waste and fraud within the federal budget, which currently stands at $6.5 trillion. Its ultimate goal is to offer more government transparency and support entrepreneurship.
Blockhead
Members of the crypto industry have praised the department, which was created ahead of President Donald Trump's inauguration on 20 January. Coinbase CEO Brian Armstrong described DOGE as a "once in a lifetime opportunity" to increase "economic freedom."
"The founding fathers were geniuses but (with humility) may have missed the adverse incentives which grow the size of democratic government over time (winning elections by promising more free stuff)," he added.
. @DOGE is a once in a lifetime opportunity to increase economic freedom in the U.S. and cut the size of government back to health.
— Brian Armstrong (@brian_armstrong) November 17, 2024
The founding fathers were geniuses but (with humility) may have missed the adverse incentives which grow the size of democratic government over…
A team of 100 volunteers have already begun work on various projects, underscoring the Trump administration’s broader pro-cryptocurrency stance.
On Thursday, Trump signed an order in the Oval Office that aims to advance cryptocurrency in the US while exploring the development of a digital asset stockpile.
“The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership,” the executive order reads.
The executive order addresses the establishment of technology and regulatory frameworks for cryptocurrency development in the US, and the creation of a working group to assess the feasibility of a national digital asset stockpile.
