The Trump administration is set to revamp the U.S. Agency for International Development (USAID) and incorporate blockchain technology into its procurement processes, as mentioned in a memo that has been shared among State Department personnel.
This initiative suggests rebranding the agency to U.S. International Humanitarian Assistance and placing it directly under the Secretary of State’s oversight. It aims to utilize blockchain for tracking aid distribution and promoting payment models based on results instead of just inputs.
According to the memo, “All distributions would be secured and traced using blockchain technology to significantly enhance security, transparency, and accountability,” noting that this strategy would foster innovation and improve operational efficiency.
It remains uncertain if the blockchain implementation will involve cryptocurrency or stablecoins, or if it will merely function as a digital ledger.
USAID has faced increased scrutiny from the current administration since the establishment of the Department of Government Efficiency, which Elon Musk oversees. This department had previously recommended the use of blockchain technology to improve efficiency. Recently, the president issued an executive order that halted USAID payments on January 20.