HUD Explores Blockchain as Trump Calls for Crypto Adoption  

• HUD is considering using blockchain for tracking grants as part of a possible federal shift. 
• Trump wants stablecoin rules and a U.S. Bitcoin reserve to expand digital finance.  
• Some of the officials worry blockchain could complicate HUD’s entire financial system. 

The U.S. Department of Housing and Urban Development (HUD) is exploring blockchain technology to track grants. A report revealed that HUD has held internal discussions to evaluate blockchain’s potential in managing government funds. Some officials believe this could serve as a pilot for broader federal crypto adoption. However, concerns over Bitcoin’s volatility and blockchain’s complexity have sparked internal disagreements.  

Government Officials Debate Blockchain’s Role in HUD Operations

HUD has considered using blockchain within its Community Planning and Development (CPD) office to enhance grant tracking efficiency. Internal documents and recordings reviewed by ProPublica indicate that the proposal aims to improve financial oversight. However, some officials warn of potential risks, calling the plan “dangerous and inefficient.” Critics argue that stablecoin transactions could introduce volatility and unnecessary complications into HUD’s financial systems.

Besides tracking grants, discussions reportedly included the possibility of using Bitcoin for government payments. A few of the HUD employees oppose the idea, giving out opinions about Bitcoin’s lack of insurance, frequent price swings, and links to financial speculation. Nevertheless, proponents argue that blockchain offers unmatched transparency in federal spending, which could enhance accountability.  

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Blockchain Integration Aligns With U.S. Crypto Expansion Plans

The conversation at HUD coincides with a broader push for digital asset adoption in the U.S. government. President Donald Trump recently signed an executive order to establish the U.S. Digital Asset Stockpile and Strategic Bitcoin Reserve. At the White House Crypto Summit, he emphasized stablecoin legislation and pledged to prevent crypto debanking.

Treasury Secretary Scott Bessent also said that stablecoins function in maintaining the U.S. dollar’s dominance as the world’s reserve currency. Additionally, reports suggest that Trump adviser Elon Musk supports integrating blockchain into federal financial tracking. His budget-cutting recommendations have allegedly influenced HUD’s ongoing discussions.

Despite the lack of formal regulations, HUD’s interest in blockchain reflects a trend in government agencies as they continue their journey in exploring digital financial technologies. Could this signal a broader shift toward blockchain adoption across federal departments?

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