- Elon Musk proposed to move the US Treasury to blockchain for transparency and tracking.
- Critics warn blockchain-based Treasury could weaken the US dollar and slow transactions.
- Although Trump acknowledged Musk’s access to the Treasury systems, he hasn’t commented on the proposal.
Elon Musk has proposed moving the US Treasury onto blockchain technology to improve transparency. His suggestion came after he gained access to the Treasury’s core payment system, which manages federal expenditures. Musk claimed that officials approve fraudulent payments daily and emphasized that blockchain could track government transactions and prevent any financial mismanagement.
His proposal followed a weekend of controversy. Reports indicated that Musk had “read-only access” to sensitive Treasury data, including Social Security and Medicare records. The situation raised legal concerns over potential data misuse. Several activist groups and unions quickly filed a lawsuit against Musk’s actions.
Musk responded by suggesting blockchain technology as a solution. When asked if the Treasury should be moved to blockchain, he answered, “yes!” Musk stated that it could safeguard data, track federal spending, and process payments, but did not provide specific details on how the system would work.
Critics argue that using blockchain for Treasury transactions could have negative consequences. Some experts worry about inflation and slower transaction times. Others warn that linking government funds to crypto could destabilize the US dollar. The US has spent decades establishing the dollar as the global standard. Experts caution that Musk’s plan might weaken its position.
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Musk’s plan would make the Treasury the second-largest crypto asset by market cap, but Bitcoin should be the larger one. Supporters say blockchain could bring more accountability to government spending. However, opponents argue it could create risks for taxpayers.
The US government has not announced any official plans to move the Treasury to blockchain. President Donald Trump acknowledged Musk’s access to Treasury systems but did not comment on the proposal. State lawmakers are also exploring blockchain-based reserves, adding to the debate.
The situation has sparked broader concerns about crypto market volatility. Some experts warn of a potential bubble driven by speculation, while others worry that increased reliance on blockchain could shift wealth toward crypto investors. With this, the debate over blockchain’s role in government finances continues to grow.
