Media: USAID will implement blockchain technologies to increase transparency

What’s new? Donald Trump’s administration intends to restructure the Agency for International Development (USAID) and integrate blockchain technology into its procurement system. As Wired reports, citing a document circulated among State Department officials, the plan involves renaming the agency the International Humanitarian Assistance (IHA) of the United States and placing it directly under the Secretary of State.

Material by Wired

What else is known? After the rebranding, the agency will use blockchain to track aid distribution and maintain a payment model based on outcomes rather than inputs. In this way, the administration intends to improve the agency’s efficiency and foster innovation in the public sector.

“All distributions would also be secured and traced via blockchain technology to radically increase security, transparency, and traceability.This approach would encourage innovation and efficiency among implementing partners and allow for more flexible and responsive programming focused on tangible impact rather than simply completing activities and inputs,” the document reads.

It is currently unknown whether cryptocurrencies/stablecoins are envisioned to be used, or whether the blockchain will only act as a digital registry to track payments, their target spending, and outcomes.

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USAID has been under scrutiny by the Trump administration since the creation of the Department of Government Efficiency (DOGE), headed by Elon Musk, who also proposed implementing blockchain to improve efficiency.

Shortly after Trump’s inauguration, DOGE placed all USAID staff on administrative leave, reduced staff, and stopped some payments to partner organizations around the world under the president’s January 20 executive order.

A federal judge later issued a preliminary injunction against the agency’s dissolution, but the new document indicates that the administration plans to continue drastically downsizing USAID and bringing it under the jurisdiction of the State Department.