BLOCKCHAIN & BITCOIN will be playing Big role in U.S Government

  

The world of audit and accounting is about to witness a sea of changes in the coming years. Well, I might be late in writing but Blockchain and Bitcoin are now part of the U.S. government policy framework and parking facility. Yes, there is dramatic change happening in the world of Bitcoin where a significant policy framework is getting into play. The idea of putting all U.S. government spending on a blockchain is definitely bold and would revolutionize transparency, accountability, and efficiency. If implemented correctly, it could reduce fraud, streamline audits, and increase public trust in government spending. However, there are also challenges—scalability, privacy concerns, and resistance from entrenched interests who benefit from the current system.

 In a world increasingly driven by technological innovation, government transparency remains one of the most pressing challenges. Recent proposals by Elon Musk and Coinbase CEO Brian Armstrong to place all U.S. government spending on blockchain could be a game-changer. With the U.S. government spending an estimated $6.9 trillion annually, moving these transactions to a decentralized ledger could provide unparalleled security, transparency, and efficiency. While resistance is expected from those who benefit from the current inefficiencies, implementing blockchain technology could eliminate waste, reduce fraud, and help rein in deficit spending. Moving all US spending to the blockchain would reduce fraud in the US Treasury's budget from 24% to 0% overnight. Even if just 1% of US spending goes to waste each year, that's $69 BILLION per year. Cutting 5% would save $338 billion, or 19% of annual deficit spending

 The Benefits of a Blockchain-Based Government Ledger

1. Enhanced Security and Fraud Prevention

Currently, U.S. government spending records exist in an append-only format that makes it difficult to track and verify individual expenditures. Blockchain technology would enable automatic tracking of transactions and real-time fraud detection. For instance, a recent investigation uncovered 62 contracts worth $182 million dedicated solely to "administrative expenses," including $168,000 for an Anthony Fauci exhibit at the NIH Museum. With blockchain, such expenditures would be easily flagged and reviewed.

2. Greater Transparency and Public Accountability

Government spending databases are notoriously difficult to navigate, making it nearly impossible for taxpayers to scrutinize spending. Blockchain technology would allow instant searches and tracking of expenditures, giving the public a clearer picture of where their tax dollars are going. In a time when government trust is at an all-time low, blockchain adoption could restore faith in public institutions.

3. Reducing "Ghost Beneficiaries" and Fraudulent Payments

One of the biggest financial inefficiencies in government spending is improper payments to ineligible recipients. In 2022 alone, improper Social Security payments amounted to $13.6 billion. Blockchain could eliminate these "ghost beneficiaries" by ensuring that aid programs, pensions, and Social Security payments are only made to verified and eligible individuals. Smart contracts could automate verification processes, significantly reducing fraud and administrative costs.

4. Cutting Unnecessary Spending and Deficit Reduction

If the U.S. government wants to eliminate deficit spending, it must cut $5 billion in spending per day. Currently, the government spends 44% of GDP per year—the same levels seen during World War II. By bringing inefficiencies to light, blockchain could help policymakers make better decisions on spending cuts. A recent analysis found that $322 billion of taxpayer money has gone to various 501(c)(3) organizations, with a total of $724 billion in government contributions. Greater transparency would allow taxpayers to question these expenditures and demand accountability.

5. Automated Audits and Cost Savings

Blockchain technology could streamline financial audits by automating tracking and verification processes. Currently, audits require extensive manual labour and are often conducted long after the spending has occurred. With blockchain, audits could happen in real-time, preventing waste before it happens. Many large banks and corporations have already implemented blockchain solutions for cross-border transactions, with 56% of businesses integrating blockchain into their operations as of 2024. The U.S. government could benefit from the same efficiencies.

Conclusion

At the same time, one will find resistance, particularly from those who enjoyed inefficiencies  The proposal to place all U.S. government spending on blockchain could transform the way taxpayer money is tracked and managed. By ensuring security, transparency, and efficiency, blockchain technology has the potential to reduce waste, eliminate fraud, and help curb deficit spending. While resistance from entrenched interests is inevitable, the long-term benefits far outweigh the challenges. As technology continues to disrupt traditional governance, those who embrace change—both policymakers and investors—stand to benefit the most.

Very soon other countries will adopt and at the same time many countries and many government departments and employees of the U.S. will feel the hit of such transparency and audit mechanism.  By 2030, Deutsche Bank estimates there will be over 250 MILLION blockchain wallet users.