Elon Musk is in talks about using blockchain technology to improve efficiency within the newly established Department of Government Efficiency. This initiative signals the Trump administration’s growing interest in the digital asset industry.
According to sources familiar with the discussions, Musk believes a digital ledger could cut government costs. One insider shared that the conversations revolve around using blockchain for tracking federal spending, securing data, making payments, and even managing buildings. Representatives from various public blockchains have met with Musk’s team to evaluate their technology.
The White House and DOGE officials did not respond to requests for comment. Musk also remained silent on the issue. However, the discussions make sense given that DOGE, the department Musk heads, shares its name with the popular cryptocurrency, Dogecoin, which operates on its own blockchain.
President Trump has acted swiftly to establish cryptocurrency-friendly policies. Recently, he signed an executive order forming a working group on digital assets, including key administration members. Created by Trump’s January 20 executive order, DOGE aims to modernize federal technology to boost efficiency and productivity. The group will collaborate with the White House Office of Management and Budget to identify spending cuts and complete its recommendations by July 4, 2026.
Before Trump took office, Musk gathered about 100 volunteers to help write code for his projects. Blockchain is just one of several tools that Musk’s team might employ to address issues like wasteful spending, fraud, and abuse—topics that were central to Trump’s 2024 campaign. Trump has criticized the rising national deficit, blaming previous policies for the financial strain.
While the potential applications of blockchain are vast, its use in a massive entity like the U.S. government is largely untested. Major companies like Walmart have explored blockchain, but many of these efforts faced governance challenges and stalled. Furthermore, some found that blockchain technology did not always outperform existing database systems.
Sam Hammond from the Foundation for American Innovation noted that a government blockchain could enhance the tracking of spending, documents, and contracts securely and transparently. However, he questioned the necessity of blockchain over conventional databases.
Duke University finance professor Campbell Harvey cautioned against using public blockchains for government purposes. He pointed out that such systems would limit the government’s control over data entries.
Despite these concerns, some institutions have successfully adopted public blockchains for business. BlackRock has issued a money-market fund using cryptocurrency ledgers, while California’s DMV has digitized car titles on the Avalanche blockchain.
If DOGE moves forward with blockchain technology, it could lead to the most significant government project seen in the U.S. to date. The outcome of these discussions remains uncertain, but they certainly highlight a bold vision for the future of government efficiency.
