Musk ponders using blockchain to fight bureaucracy in US

Elon Musk, heading the Department of Government Efficiency (DOGE), is exploring the use of blockchain technology to modernize federal operations and cut costs.

Sources familiar with the matter say Musk has discussed using a digital ledger to track federal spending, secure data, manage payments, and oversee government facilities, Caliber.Az reports, citing a foreign news source.

Representatives from DOGE have also engaged with public blockchain providers to evaluate their technology.

This initiative reflects President Donald Trump’s broader push to embrace digital assets, underscored by a recent executive order establishing a working group on the topic. DOGE, created on January 20, is tasked with identifying cost-cutting measures and modernizing government technology, with final recommendations expected by July 4, 2026.

Proponents suggest blockchain could enhance transparency and efficiency in managing government finances and contracts. However, some experts argue that conventional databases may deliver similar results without the complexities of blockchain. Public blockchains, such as Bitcoin and Solana, also raise concerns over governance, as they rely on decentralized networks outside government control.

Previous corporate blockchain projects have faced challenges, including high costs and governance issues, but institutions like BlackRock and California’s DMV have recently implemented blockchain technology for specific applications. If Musk and his team move forward, this could become the largest government blockchain initiative in US history. However, the project’s future remains uncertain, with no official comments from Musk, DOGE, or the White House.

By Khagan Isayev