Trump Administration Considers Restructuring USAID with Blockchain Technology
The U.S. government plans to implement blockchain in USAID’s operations to improve aid distribution security and transparency.
What to know:
- The Trump administration intends to restructure USAID, renaming it as U.S. International Humanitarian Assistance while placing it under the Secretary of State’s authority, as reported by Wired.
- The initiative aims to integrate blockchain technology into the procurement system of USAID to enhance security, transparency, and traceability in the distribution of aid.
The Trump administration is preparing to overhaul the U.S. Agency for International Development (USAID) and integrate blockchain technology into its procurement system, according to a memo circulating within the State Department. The proposed plan aims to rebrand the agency as U.S. International Humanitarian Assistance and move it directly under the jurisdiction of the Secretary of State. The use of blockchain technology would be intended to trace aid distributions and tie payment models to outcomes rather than merely inputs.
“All distributions would also be secured and traced via blockchain technology to radically increase security, transparency, and traceability,” the memo reportedly mentions, highlighting that this approach could foster innovation and efficiency.
It’s uncertain whether this blockchain application would incorporate cryptocurrency or stablecoin, or if it would serve simply as a digital ledger.
USAID has faced scrutiny from the Trump administration following the establishment of the Department of Government Efficiency (DOGE), overseen by Elon Musk. DOGE has previously suggested the use of blockchain technology to enhance operational efficiency. On January 20, the president issued an executive order that froze payments by USAID.
