As the Head of the newly established Department of Government Efficiency (DOGE), Elon Musk is proposing the introduction of blockchain technology to streamline federal operations. 

Under Donald Trump’s second stint as US President, Musk has been picked to lead the new department in order to streamline federal finances, such as reducing wasteful spending and “modernising federal technology and software to maximize governmental efficiency and productivity”.

Musk’s early answer to many of the objectives outlined by DOGE is to look to blockchain to streamline operations. The tech multi-billionaire has proposed the technology as a digital ledger to enable the US government to track its spending at a much more efficient rate.

According to a report by Bloomberg, Musk is seeking to integrate blockchain technology as a means to save money by steering away from traditional financial models, also allowing DOGE to make payments and securely manage federal buildings through smart contracts. 

Not Musk’s first rodeo

It may have come as a surprise to no one when Musk was named Head of DOGE – a nod to the popular memecoin that Musk has been a huge proponent of over recent years. 

This is not however the first time the Tesla Founder has looked to integrate blockchain technology within his own remit. After acquiring Twitter in October 2022, now rebranded to ‘X’, Musk was in talks with Binance to integrate its blockchain capabilities to the social media platform. 

In a somewhat more daring innovation for X, Musk has been preparing for the launch of ‘X Money’. The planned platform will facilitate the use of cryptocurrencies, and Musk has been filing for payment licences for the past two years in order to create a new super app. 

Now pursuing the use of blockchain at a federal level, Bloomberg reported that several representatives from blockchain companies have met with DOGE officials regarding the potential integration. 

Under President Trump’s crypto-friendly administration, the use of blockchain technology to track government spending and payments seems likely as the President is keen to see the US become the ‘crypto capital’ of the world.

The establishment of DOGE was not the only executive order Trump passed recently to forgo his crypto ambitions, as he created a digital asset working group last week. Led by Venture Capitalist David Sacks, the group will oversee and identify all regulations relating to crypto, blockchain and digital assets that affect all within 30 days.