Elon Musk proposes using blockchain for governance, could it become a new key to government transparency?

According to informed sources, Elon Musk has initiated discussions on the use of blockchain technology in the newly established U.S. Department of Efficiency. This is the latest sign of the Trump administration's desire to boost the digital asset industry.

A source who requested anonymity due to the private nature of the discussions stated that Musk, who is leading the effort to enhance government efficiency, has proposed the idea of using digital ledgers to reduce government costs to close allies. This source mentioned that discussions have already included using blockchain to track federal expenditures, protect data, conduct payments, and even manage buildings.

One person familiar with the discussions stated that officials from the Department of Efficiency have met with representatives from several public blockchains to assess their technologies.

Representatives from the White House and the Department of Efficiency did not respond to requests for comment. Musk did not reply to an email seeking comment.

The Department of Efficiency, created by Trump's executive order on January 20, is responsible for modernizing federal technology and software to maximize government efficiency and productivity. Trump has indicated that the team will work with the Office of Management and Budget to identify expenditures that can be cut, with recommendations to be completed by July 4, 2026.