Elon Musk eyes blockchain tech for Donald Trump's DOGE initiative
What's the story
Elon Musk is reportedly looking into the possibilities of using blockchain technology to modernize the federal government in the US. The effort comes as part of his work at the Department of Government Efficiency (DOGE), a new agency set up by the Donald Trump administration. The agency's main aim is to streamline the government and cut costs.
Blockchain potential
DOGE explores blockchain for government operations
Musk has been talking about using blockchain, a decentralized digital ledger, with his close allies. The tech could be leveraged in areas ranging from tracking federal spending and securing sensitive data to processing payments and managing government-owned properties. DOGE representatives have also met with a number of public blockchain developers to evaluate the viability of this tech for government use.
Digital assets
Trump administration's pro-cryptocurrency stance
The Trump administration has been keenly interested in digital assets, as evidenced by DOGE's name, a nod to cryptocurrency Dogecoin. On January 20, Trump signed an executive order to form a working group on digital assets. The order officially created DOGE to overhaul federal technology systems and identify cost-saving measures. The group is expected to submit its recommendations by July 4, 2026.
Team and concerns
Musk assembles team for DOGE, experts voice concerns
Reportedly, Musk has put together a team of around 100 volunteers to help with coding and project development for DOGE. However, some experts have raised skepticism over the feasibility of blockchain for government work. Sam Hammond of the Foundation for American Innovation said that while an internal government blockchain could track spending and contracts securely and transparently, regular databases could do the same with fewer downsides.
Governance issues
Public blockchains pose governance challenges
Public blockchains, such as those employed by cryptocurrencies Bitcoin and Solana, also present governance issues. Campbell Harvey, a finance professor at Duke University, warned that governments could lose control over entries on public ledgers, making it difficult to govern sensitive data. Despite these issues, examples of blockchain applications in public and private sectors are increasing. California's DMV digitized car titles on Avalanche blockchain, while investment firm BlackRock launched a money-market fund on cryptocurrency networks.
Blockchain selection
Uncertainty looms over DOGE's blockchain choice
The Trump administration's support for blockchain technology is in line with its larger push for innovation. The government has already looked into issuing tokens on the Solana blockchain for Trump and Melania memecoins. However, it is still unclear which blockchain DOGE would use for its operations. If taken forward, Musk's plan would be the most ambitious government blockchain project in the US yet. But experts warn that large-scale applications of blockchain are still unproven in terms of efficiency and cost-effectiveness.