Elon Musk, the world’s richest man, is mulling placing the the U.S. Treasury — which handles government assets worth trillions of dollars — on a blockchain network.
Musk has expressed concerns about government spending and raised issues about U.S. Treasury officials making fraudulent payments, though without providing direct evidence.
The billionaire currently leads the Trump administration’s temporary Department of Government Efficiency (DOGE) and often cites cost savings as his primary motivation for switching to a blockchain network, though he has provided no details on the costs of setting up or maintaining such a network.
It’s also unclear what the blockchain network might be used for, but in the past, Musk has suggested that the decentralized technology could track data on federal expenditures, oversee government payments, and even manage infrastructure.
Musk’s team at DOGE has already consulted with multiple blockchain firms about setting up a blockchain network for government use.
The government’s annual spending on IT (information technology) exceeds $100 billion, with almost 80% allocated to maintaining outdated, legacy systems, according to government data.
However, there are myriad challenges in putting data on blockchain networks, including scalability and performance issues, problems integrating new blockchain systems with legacy systems, and a paucity of qualified blockchain professionals to handle specialized tasks on the networks.
Beyond the technological challenges, Musk's role in government has ignited debate. This week, Massachusetts Senator Elizabeth Warren criticized Musk's government involvement as an unelected figure: “No one elected Elon Musk to nothing,” Warren said in a speech at the Treasury Department. “Not one Democrat in America voted for Elon Musk. Not one Republican in America voted for Elon Musk. Not one Independent in America voted for Elon Musk. Not one Libertarian voted for Elon Musk. Damn, not one vegetarian in America voted for Elon Musk. And yet, Elon Musk is seizing the power that belongs to the American people."