A memo reviewed by WIRED indicates that the Trump administration plans to rename the United States Agency for International Development (USAID) to US International Humanitarian Assistance (IHA) and restructure it under the secretary of state. This reorganization will include utilizing blockchain technology for procurement, enhancing security, transparency, and traceability of aid distributions. Although the memo does not specify how blockchain will be applied—whether through cryptocurrency cash transfers or as a tracking ledger for aid—its implications have left USAID staff concerned about their future. The agency has faced significant cuts and changes since President Trump’s inauguration, including a temporary termination of staff and funding for critical global partnerships. Despite a federal judge’s injunction against these changes, the administration seems intent on reducing USAID’s role and integrating it into the State Department. Experts in the humanitarian sector express skepticism about the effectiveness of blockchain, arguing it often provides no significant benefit over existing technologies for aid distribution.

While some successful pilot projects using blockchain, such as the UNHCR's cash assistance for displaced Ukrainians, exist, they are rare and may introduce complexities for small NGOs that partner with USAID. The proposed use of blockchain aligns with a strategy of enhancing control over aid funding, with plans to tie payments to the outcomes rather than inputs. However, many USAID employees argue that such contractual arrangements may not be flexible enough for rapidly changing conditions in conflict and disaster zones. Critics also suggest that the administration's narrative hints at corruption within USAID without evidence to justify these claims. This article originally appeared on WIRED.