The US government may be preparing to overhaul the US International Development Agency (USAID), and blockchain technology is set up to play a vital role.
The leaked internal memo reveals that the Trump administration is evaluating plans to restructure the USAID structure and coordinate more closely with the State Department and introduce new technologies to improve efficiency.
Politico first reported the story.
US foreign aid blockchain?
According to the memo, one of the proposed changes would involve rebranding the agency as an international humanitarian agency in the United States.
This occurs with changes in the way AIDs are managed and tracked to improve transparency and monitoring of fund distribution using blockchain.
This document suggests that new approaches prioritize outcomes and real-world impacts rather than simply engraving programmatic activities.
The memo has not come to detail how blockchain is applied, but early speculations show that it will be integrating stylization for aid flows and perhaps directly traceable financial aid.
The ability of blockchain to provide safe, transparent, tamper-proof records makes it a potential game-changer for government assistance programs that are often criticised for inefficiency and mismanagement.
The proposed restructuring follows a dramatic cut in the agency. The government's Department of Efficiency (DOGE) has recently placed thousands of USAID staff on administrative leave, reducing its workforce from 10,000 to 300.
Payments to international partners were also frozen, prompting legal action that temporarily stopped further confusion. Nevertheless, the leaked notes indicate that a wider transformation may still be in the table.
Trump's administration embraces blockchain technology
The move reflects wider interest in blockchain at the federal level.
Earlier this year, it was revealed that Doge was investigating how blockchain can improve public sector operations. Especially in areas such as budgeting, data security, payment systems, and real estate management.
Analysts say the shift will provide real-time visibility into how taxpayer dollars are used, reducing waste and setting new standards for government transparency.
If implemented, this change could mark a turning point for the US approach to foreign aid in governance and digital innovation approaches.
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