Unusual Whales

Elon Musk has initiated talks about using blockchain in his US government efficiency effort with the Department of Government Efficiency

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Musk’s Blockchain Push at Department of Government Efficiency Signals Trump’s Crypto-Friendly Policies

Elon Musk, who leads the newly created Department of Government Efficiency (DOGE), is exploring the use of blockchain technology to streamline federal operations and reduce government spending, according to sources familiar with the discussions.

The initiative is part of President Donald Trump’s broader push to support digital assets and modernize federal technology.

Musk’s Vision: Blockchain for Government Efficiency

Musk has privately floated the idea of using a digital ledger to track federal spending, secure government data, process payments, and even manage government buildings, said one person familiar with his thinking.

People affiliated with DOGE have met with representatives of various public blockchains to evaluate the technology’s potential applications, another source said.

"A blockchain could cut costs and improve transparency in federal operations," said one person familiar with the discussions, who requested anonymity because the talks haven’t been made public.

Trump’s Crypto-Friendly Policies Take Shape

The creation of DOGE, established by Trump’s Jan. 20 executive order, aligns with his administration’s efforts to integrate digital assets into government policy.

  • On Thursday, Trump signed an executive order forming a working group on digital assets, which includes key members of his administration.
  • DOGE’s mission is to modernize federal technology and work with the White House Office of Management and Budget to identify spending cuts, with recommendations due by July 4, 2026.

Musk’s Team and Blockchain Development

Musk enlisted about 100 volunteers before Trump’s inauguration to begin writing code for DOGE-related projects, one source said.

The blockchain initiative would be one of several technological tools aimed at eliminating wasteful spending, fraud, and abuse—a core issue of Trump’s 2024 campaign.

In December, a Trump transition official was pitched on blockchain use cases, including:

  • Tracking government funds to prevent misuse.
  • Securing sensitive government data.
  • Enhancing transparency in federal transactions.

While the specific blockchain network DOGE might adopt remains unclear, Trump’s business associates recently chose Solana’s blockchain to issue Trump and Melania-themed memecoins, which have drawn both interest and criticism.

Blockchain’s Untested Role in Government

Although blockchain technology was pioneered by Bitcoin to verify transactions without a central authority, its large-scale use in government remains untested.

  • Major corporations, including Walmart, experimented with private blockchains for supply chain tracking.
  • Most corporate blockchain efforts have been closed systems, unlike public blockchains, where transactions are fully viewable.

Whether Musk’s blockchain push gains traction remains to be seen, but its consideration underscores Trump’s increasing embrace of cryptocurrency and digital innovation.