Trump Administration Explores Blockchain for Foreign Aid as Part of USAID Reform: Report
The initiative aims to introduce blockchain technology into the procurement system to improve security, transparency and traceability of aid distribution.
Francisco Rodriguez | Edited by Sheldon Rebeck on March 21, 2025, 12:13 UTC
What you should know:
- According to Wired, the Trump administration intends to reform USAID, changing its name to the United States Agency for International Humanitarian Assistance and placing it under the Secretary of State.
- The initiative includes integrating blockchain technology into USAID's procurement system to improve security, transparency, and traceability of aid distribution.
The Trump administration is preparing to restructure the U.S. Agency for International Development (USAID) and introduce blockchain technology into its procurement system, according to a Wired report citing a memo circulated among State Department staff.
The initiative would rename the agency U.S. International Humanitarian Assistance and report directly to the Secretary of State, Wired reported. It would use blockchain to track aid distribution and implement payment models that focus on results rather than costs.
“All distributions will also be secured and tracked using blockchain technology, which will significantly enhance security, transparency and traceability,” the memorandum says, adding that the approach will promote innovation and efficiency.
It is currently unclear whether the blockchain will use cryptocurrency or stablecoins, or whether it will simply function as a digital ledger.
USAID has been under scrutiny by the Trump administration since the creation of the Department of Government Efficiency (DOGE), led by Elon Musk. DOGE has previously proposed using blockchain technology to improve efficiency. The president suspended payments to USAID in an executive order on January 20.
