Elon Musk has provoked anger in Germany over his comments on the country's politics
Will Elon Musk's DOGE adopt blockchain technology to cut federal spending? AFP

KEY POINTS

  • DOGE affiliates have reportedly been discussing potential use cases with various blockchain projects
  • Among the use cases mentioned is a blockchain ledger for tracking federal spending – a notion RFK Jr. previously floated
  • Prominent crypto figures agree that putting U.S. government spending data onchain will strengthen trust with the public

Tech titan Elon Musk, who currently leads the Department of Government Efficiency (DOGE), is considering the possibility of utilizing blockchain technology as part of his mission of cutting federal spending, a new report revealed.

Musk and DOGE representatives have held discussions with several blockchain providers as he mulls options to place government systems onchain and save on operational costs, Bloomberg reported over the weekend.

Multiple Use Cases Being Explored

DOGE's efforts to explore blockchain technology's benefits for the department's mission have largely been behind-the-scenes as the office's affiliates met with a variety of public blockchain projects to assess their technology. Among the potential use cases supposedly being considered are:

  • Ledger – With a blockchain ledger, the DOGE can track government spending – an activity very much aligned with the Tesla CEO's bid to cut federal spending by up to $2 trillion. During his 2024 presidential campaign, Robert F. Kennedy Jr. (RFK Jr.), a known Bitcoin and crypto advocate, floated the idea of putting the entire U.S. budget on the blockchain. RFK Jr. ultimately stepped out of the race and endorsed U.S. President Donald Trump. He has been nominated to lead the Department of Health and Human Services.
  • Data security – Over the past decades, there have been government data security issues that blockchain's secure channels may be able to solve and it is something the DOGE is reportedly considering.
  • Payments – Several cryptocurrency and blockchain firms have championed the idea of using blockchain in government, and in the case of DOGE, it is reportedly exploring the use of the technology for federal transactions.

Musk's DOGE has yet to issue an official statement regarding the report.

Crypto Reacts to Report

The report's details have since become a topic of interest in the crypto space over the weekend, with some industry leaders sharing their thoughts on the matter.

Changpeng "CZ" Zhao, the founder of crypto exchange giant Binance, said, "All governments should track all their spending on the blockchain, an immutable public ledger." He pointed out that his statements were an "unpopular opinion."

Prominent crypto lawyer James "MetaLawMan" Murphy, said Zhao's comments were only unpopular "among the people who spend the tax money in Washington, D.C."

MultiversX co-founder Lucian Mincu took the conversation a notch higher, offering the distributed blockchain network of MultiversX to provide "technical support and cover transaction fees."

Web3 strategist Rachel Wilkins said she completely agrees that in government, "transparency breeds accountability" and a blockchain-based public ledger could "revolutionize trust in the government."

DOGE Seeks Tech Experts

While the DOGE hasn't issued an official statement on the matter yet, it posted on X Sunday to reveal open positions at the office, which was recently designated as an official presidential unit.

Among the full-time, salaried jobs up for grabs are software engineers, financial analysts, HR professionals, and InfoSec (information security) engineers.

Notably, InfoSec and blockchain are closely related since emerging blockchain tech has been helping revolutionize cybersecurity in recent years. It is unclear whether the said job posts are related to the DOGE's supposed considerations around blockchain.

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