Musk Explores Blockchain for Government Spending
Elon Musk, as head of the newly-formed Department of Government Efficiency (DOGE), is reportedly considering using blockchain technology to overhaul federal spending processes. Bloomberg News reported that Musk is floating the idea of using a digital ledger to improve efficiency within the government, according to sources familiar with the matter.
The discussions involve utilizing blockchain to monitor federal spending, streamline payments, secure government data, and manage federal buildings. A source indicated that representatives from DOGE have already met with public blockchain developers to evaluate their technology.
Created amidst President Trump’s executive orders, DOGE is tasked with updating federal software and technology to improve efficiency and productivity. Cuts are expected to be recommended by July 4, 2026.
This initiative aligns with President Trump’s pro-cryptocurrency policies. An executive order issued on January 23, 2025, created The Presidential Working Group on Digital Asset Markets. This group will explore the possibility of creating a “national digital asset stockpile,” potentially using crypto seized by law enforcement.
Last week, PYMNTS wrote about the importance of privacy in scaling the technology across the financial services sector.
“At its core, the order signals a shift in the federal government’s approach to blockchain technology, stablecoins and the broader digital asset ecosystem, emphasizing innovation, regulatory clarity and competitive positioning,” PYMNTS wrote.
“For the payments industry, this policy represents both an opportunity and a challenge, reshaping how financial technology is poised to evolve in the U.S.”
Research by PYMNTS Intelligence suggests that blockchain provides numerous benefits for regulated industries, including finance. “As more banks integrate blockchain capabilities, customers will have greater choice in transferring value,” FV Bank CEO Miles Paschini told PYMNTS.
“We’re blazing the trail for a future where blockchain is just another payment rail.”
However, without strong privacy mechanisms, financial services adoption of blockchain could be limited to niche cases where strict data protection isn’t essential.
“Ultimately, the relationship between blockchain and traditional finance exemplifies the broader tension between innovation and regulation,” PYMNTS wrote.
“By embracing this paradox and investing in privacy-preserving technologies, collaborative frameworks and regulatory clarity, the financial industry can turn blockchain’s transparency from a challenge into a competitive advantage.”
