The Department of Government Efficiency (DOGE), under the leadership of Elon Musk, has been in discussions regarding the implementation of blockchain technology. With Musk now at the helm following Vivek Ramaswamy's recent departure as co-lead, he has proposed leveraging blockchain to lower costs, streamline operations, and increase transparency across government activities. These confidential talks include suggestions for using blockchain to monitor federal expenditures, safeguard sensitive information, handle payments, and even manage government properties. If realized, this application could represent the most significant use of blockchain technology in the history of the US government. Prior to DOGE's involvement, blockchain had mostly been utilized for basic governmental functions, such as the California DMV adopting the Avalanche blockchain for digitizing vehicle titles. DOGE's primary objectives focus on refining government operations by eliminating redundant structures, reducing unnecessary spending, restructuring federal agencies, and addressing areas of waste and fraud within the current $6. 5 trillion federal budget. The overarching aim is to enhance government transparency and foster entrepreneurship. Crypto industry advocates have lauded the department, which was established before President Donald Trump's inauguration on January 20.

Brian Armstrong, CEO of Coinbase, referred to DOGE as a "once in a lifetime opportunity" to promote "economic freedom. " Armstrong remarked that while the founding fathers were visionary, they may not have anticipated the negative incentives that could contribute to the expansion of democratic government through promises of free benefits to win elections. A dedicated team of 100 volunteers has already commenced work on various initiatives, highlighting the Trump administration's broader support for cryptocurrency. On Thursday, Trump signed an executive order in the Oval Office aimed at advancing cryptocurrency in the United States while exploring the creation of a national digital asset reserve. According to the executive order, "The digital asset industry plays a vital role in promoting innovation and economic growth in the United States, as well as our nation's global leadership. " The order outlines the development of technology and regulatory frameworks for cryptocurrency in the U. S. and establishes a working group to evaluate the feasibility of a national digital asset stockpile.