The Trump administration is reportedly planning a significant restructuring of the United States Agency for International Development (USAID), including a name change and the integration of blockchain technology into its procurement processes, according to a leaked government memo.
The plan, which was detailed in a 13-page document obtained by Politico and reported by WIRED, involves renaming USAID to the U.S. International Humanitarian Assistance (IHA). Additionally, the administration intends to employ blockchain technology. The memo states that blockchain integration would “radically increase security, transparency, and traceability” of aid distributions.
The memo cited the goals of the new technology as enhancing innovation, increasing efficiency, and allowing for “more flexible and responsive programming” with an emphasis on tangible outcomes.
This move comes after a period of significant changes within USAID. Staff were put on administrative leave, and the workforce was reduced. Additionally, the State Department ordered the agency to cease some payments to partner organizations worldwide.
The precise method for integrating blockchain remains unclear, though several applications are plausible. These include using a blockchain ledger to track aid distribution, enhancing transparency, and possibly distributing monetary aid via cryptocurrencies like stablecoins instead of traditional cash transfers.
This potential shift aligns with former President Trump’s recent advocacy for cryptocurrency regulations. During a virtual address at the Digital Assets Summit, Trump urged the U.S. Congress to implement stablecoin regulations and establish clear market rules.
Humanitarian organizations have previously experimented with blockchain technology. In 2022, the United Nations High Commissioner for Refugees (UNHCR) used stablecoins to disburse funds to displaced Ukrainians. The Kenya Red Cross Society launched a pilot project in 2018 utilizing blockchain to document transactions and provide funds to recipients without bank accounts. The International Committee of the Red Cross contributed to the development of the Humanitarian Token Solution. These examples suggest that the Trump administration’s plans have precedent within the humanitarian sector.
