Trump Administration Reportedly Eyes Blockchain for USAID Overhaul

A leaked government memo circulating among State Department officials reveals that the Donald Trump administration intends to restructure the United States Agency for International Development (USAID).

The memo, originally obtained by Politico and later reported by WIRED, outlines a restructuring of USAID, including a name change to the U.S. International Humanitarian Assistance (IHA) and the integration of blockchain technology into its procurement process.

According to the memo, the goal is to enhance efficiency and innovation in aid distribution. By leveraging blockchain technology, USAID aims to shift from traditional activity-based approaches to impact-driven programming with greater transparency and fraud prevention. The plan outlined envisions securing and tracking all distributions via blockchain to improve accountability.

However, the exact implementation details remain unclear. Potential applications might include using blockchain ledgers to meticulously record aid disbursement and distributing monetary aid through stablecoins, providing a more efficient alternative to traditional cash transfers.

This development follows USAID’s workforce reductions and changes in payment procedures to partner organizations earlier this year. These changes came after Trump’s inauguration and the launch of Elon Musk’s Department of Government Efficiency (DOGE), an initiative Trump described as a measure to curb government spending.

Notably, this isn’t the first instance of blockchain being explored for humanitarian purposes. In 2022, the UNHCR successfully piloted a program distributing funds via stablecoins to displaced Ukrainians. Similarly, in 2018, the Kenya Red Cross Society launched a pilot project utilizing blockchain to record transactions and facilitate fund distribution to individuals without requiring bank accounts, with support from the International Committee of the Red Cross. More recently, in 2023, the Singapore Red Cross announced a partnership with local crypto payment gateway Triple-A to accept cryptocurrency donations.

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