The move is seen by some as a possible pilot program for further government action
The US Department of Housing and Urban Development (HUD) is reportedly exploring the potential use of blockchain technology and stablecoins for tracking grants and making payments. While the idea is still in its early stages, discussions within the agency suggest a possible trial run to determine how these digital tools could impact federal operations.
HUD’s DOGE task force is actively working to remedy this waste of taxpayer dollars. This is a prime example of why HUD is taking inventory of every dollar spent. We will continue to execute on @POTUS’ goal to restructure & streamline government to better serve the American people https://t.co/PWEBIM7cOD
— Sec. Turner Press Office (@SecTurnerPress) March 8, 2025
According to reports, HUD officials have considered using blockchain to monitor grant distribution, particularly within the Community Planning and Development (CPD) office. This department oversees billions in funding for affordable housing and homelessness programs.
Some officials believe blockchain could improve transparency and efficiency by providing a clear, immutable record of transactions. There has also been talk of testing stablecoin payments for grantees, though this idea has sparked debate within the agency.
Critics within HUD have raised concerns about the practicality and risks of such a move. Internal discussions have highlighted fears that implementing blockchain could be overly complex and unnecessary. Some officials worry that using stablecoins for payments might introduce volatility and potential inefficiencies. A memo from one HUD official reportedly described the proposal as “dangerous and inefficient.”
Despite these concerns, some staffers see potential benefits in adopting blockchain, particularly in improving financial tracking and accountability. A follow-up meeting revealed differing opinions, with some suggesting that blockchain could be phased in gradually, beginning with the CPD office. Others believe the initiative could set a precedent for broader adoption of crypto-related technologies across the federal government.
While HUD has not committed to any immediate changes, the discussions align with a broader shift in government interest toward digital assets. Treasury Secretary Scott Bessent recently emphasized the importance of stablecoins in maintaining the US dollar’s global dominance, suggesting that federal agencies may soon face more pressure to modernize financial operations.
