Elon Musk explores the use of blockchain technology within the new Ministry of Government Effectiveness (DOGE).
The initiative is part of the broader thrust of the Trump administration to modernize government operations and support digital assets. Musk, who directs the Doge effort, discussed the potential of a large digital book in deprivation to reduce government costs.
According to a Bloomberg report, sources indicate that blockchain could be used to follow federal expenses, improve data security, facilitate payments and manage infrastructure.
People related to DOGE are committed to representatives of various public blockchains to assess their capacities. However, it is not clear which blockchain network, if necessary, will be selected.
The discussions reflect the administration’s commitment to digital innovation after the recent decree of President Donald Trump establishing a working group on digital assets.
Created by a decree on January 20, DOGE is responsible for modernizing federal technology to improve efficiency. The group operates alongside the White House management and budget office to recommend cost reduction measures by July 4, 2026.
The Musk team, which includes around 100 volunteers recruited before the inauguration, has developed software to support the initiative.
Evaluate the role of blockchain
Blockchain’s potential to improve transparency and responsibility for federal operations was a subject of discussion. A person familiar with the case revealed that in December, Trump Transition officials were presented with proposals on how blockchain could secure government data and follow financial transactions.
The idea is aligned with the wider musk efforts to eliminate ineffectiveness in public spending, a problem that Trump has often highlighted.
Various industries have used public and private blockchains, although large -scale adoption within government institutions remains rare.
In recent years, companies such as Walmart have experienced private blockchain solutions, but many have been faced with governance challenges. Although the blockchain offers transparency, experts warn that conventional databases could obtain similar results with fewer complications.
The concerns about the use of public blockchain include the government’s lack of control over the entrances to the big book. Despite these challenges, institutions such as Blackrock and California Department of Motor Vehicles have managed to integrate public blockchain networks for financial management and data.
If it is adopted by DOGE, the blockchain would be implemented on an unprecedented scale in the operations of the American government.
Legal examination and potential challenges
Remember that on January 20, the Washington Post reported that the national security advisers, a law firm of public interest, provided for a legal action contesting the legality of Doge.
The group alleges that Doge violates a 1972 law forcing the advisory committees to follow the directives of transparency and hiring. The trial argued that DOGE should be classified as a federal advisory committee subject to surveillance.
Despite its leadership under Musk and Vivek Ramaswamy, Doge is not officially recognized as a government entity. However, he hired the staff and operates near the SpaceX Washington offices.
The complaint says that DOGE should comply with the law on the federal advisory committee, which requires access and documentation on the public meeting of activities. The complainants argue that these measures are necessary to ensure transparency in its recommendations to the executive.
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