The administration led by Trump is reportedly intending to modify USAID by renaming the agency and incorporating blockchain technology into its procurement system, according to a leaked memo.
A recent report indicates that a memo circulating among officials at the State Department outlines the Trump administration’s strategy for the United States Agency for International Development.
Originally obtained by a media outlet, this 13-page document delineates the structural adjustments planned for the humanitarian agency. In addition to its new name, the U.S. International Humanitarian Assistance or IHA, USAID is expected to begin utilizing blockchain technology in its procurement efforts.
“All distributions would also be secured and traced via blockchain technology to significantly enhance security, transparency, and traceability,” the memo notes.
As highlighted in the memo, the adoption of blockchain technology is intended to foster innovation and efficiency, enabling “more adaptable and responsive programming aimed at achieving tangible impacts rather than merely fulfilling activities and inputs.”
Earlier in February, personnel from USAID were placed on administrative leave prior to the Department of Government Efficiency (DOGE) reducing its staff from 10,000 to 300 members. Additionally, the State Department instructed the agency to halt some payments to partner organizations globally.
Nevertheless, it remains uncertain how blockchain technology will be integrated into the agency’s daily functions. One possibility includes employing a blockchain ledger to log aid distribution, thereby enhancing transparency and traceability.
Another potential development could see the agency providing monetary aid through cryptocurrencies such as stablecoins to its partners rather than traditional cash transfers. Just the day before, Trump participated in a virtual gathering at the Digital Assets Summit, where he called on Congress to implement regulations for stablecoins and establish clear guidelines for stablecoins and market structures.
Historically, there have been instances where humanitarian groups have utilized blockchain technology. In 2022, the United Nations High Commissioner for Refugees conducted a small pilot project that provided funds via stablecoins to displaced Ukrainians affected by the Russia-Ukraine conflict.
Similarly, in 2018, the Kenya Red Cross Society initiated a pilot project dubbed “Blockchain Technology in Humanitarian Programming,” which employed blockchain to track transactions and facilitate fund distribution without requiring recipients to open bank accounts.
The International Committee of the Red Cross, which collaborates with the Kenyan team, also assisted in the development of the Humanitarian Token Solution.