Elon Musk is investigating the implementation of blockchain technology within the newly established Department of Government Efficiency (DOGE). This effort aligns with the Trump administration’s extensive initiative to modernize government functions and endorse digital assets. Musk, who is leading the DOGE project, has conversed privately about the potential benefits of a digital ledger to reduce government expenses. A report from Bloomberg notes that informants suggest blockchain could support tracking federal spending, improving data security, processing payments, and overseeing infrastructure. - Advertisement - DOGE representatives have interacted with public blockchain advocates to examine their functionalities. However, it is still uncertain which blockchain network, if any, will ultimately be chosen. These conversations demonstrate the administration's dedication to technological advancement in the wake of President Donald Trump’s recent executive order that formed a working group on digital assets. Established through an executive order on January 20, DOGE aims to modernize federal technology for improved efficiency. This group collaborates with the White House Office of Management and Budget to propose cost-reduction strategies by July 4, 2026. Musk’s team, composed of around 100 volunteers recruited prior to the inauguration, has been working on software to back this initiative. Assessing Blockchain’s Impact The potential of blockchain to improve transparency and accountability within federal operations has attracted interest. A source close to the discussions indicated that Trump's transition officials were briefed in December on how blockchain could secure government data and monitor financial transactions. This concept aligns with Musk’s larger mission to address inefficiencies in government spending, a topic frequently underscored by Trump. Although various sectors have embraced public and private blockchains, comprehensive adoption within governmental frameworks remains rare. In recent years, companies like Walmart have tested private blockchain options, but many encountered governance obstacles.

While blockchain provides transparency, experts warn that traditional databases might yield similar outcomes with fewer complexities. Concerns regarding public blockchain use stem from the government’s limited control over ledger entries. Nonetheless, organizations like BlackRock and the California Department of Motor Vehicles have successfully employed public blockchain networks for financial and data management. Should DOGE proceed with adopting blockchain, it would represent an unprecedented application within U. S. government operations. Legal Considerations and Possible Issues As noted by the Washington Post on January 20, the National Security Counselors—a public interest legal group—has indicated plans to file a lawsuit questioning the legality of DOGE. The organization claims that DOGE contravenes a 1972 law mandating transparency and hiring protocols for advisory committees. They assert that DOGE should be regarded as a federal advisory committee and thus subject to oversight. Despite being led by Musk and Vivek Ramaswamy, DOGE is not formally acknowledged as a governmental entity. However, it has employed staff and operates near SpaceX’s offices in Washington. The lawsuit contends that DOGE must adhere to the Federal Advisory Committee Act, which requires public access to meetings and documentation of its activities. The plaintiffs believe these steps are critical to ensuring transparency in the group's recommendations to the executive branch.