The Trump Administration Wants USAID on the Blockchain

According to The Trump administration, the memorandum that takes place between the Ministry of Foreign Affairs and its review by WIRE to rename the United States International Development Agency (the US Agency for the US Development) as an American international humanitarian assistance (IHA), and bring it directly under the Foreign Minister. The document, which Politico first states, states that as part of its reorganization, the agency will take advantage of Blockchain technology as part of the purchase.

“All distributions will also be secured and followed via Blockchain technology to radically increase security, transparency and track,” says the memo. “This approach would encourage innovation and efficiency between executing partners and allow more flexible programming and response focused on the concrete impact rather than just completing activities and inputs.”

The memorandum does not clarify what this specifically means – if it will include cash transfer operations in a type of encrypted currency or stablecoin, for example, or simply means using the Blockchain notebook to track the disbursement of aid.

The memorandum comes as employees at USAID try to understand their future. The agency was an early target of the so -called Ministry of Governmental efficiency (DOGE), which was actually headed by Centibillionaire Elusk. Shortly after president Trump’s inauguration, the Ministry of Foreign Affairs put the entire agency staff on the administrative leave, cut its working power, and stopped part of the payments to the participating organizations all over the world, including those who rescue life. Since then, a federal judge issued a preliminary order against the dismantling of the agency, but it seems that the memo indicates that the administration has plans to continue its mission of reducing the US International Development Agency significantly fully fully to the Ministry of Foreign Affairs.

The Blockchain plans have caught the guard.

Few Blockchain projects have been able to achieve widespread use in the humanitarian sector. There is a reason for this – the integration of Blockchain technology is often unnecessary.

“It looks like a fake technology solution to a problem that does not exist,” she says. “I don’t think we were able to find an unprecedented as people were using Blockchain where they could not use the existing tools.”

Julio Kobe, a senior human arrival official who has now searched the use of Blockchain in humanitarian work, says, although it is not effective at times, no clear advantages on other tools can use, such as the current payment system or another database. “There is no feature that has proven cheaper or better,” he says. “The way in which it was presented is the local technical approach that has been repeatedly proven because there is no major influence in reality.”

However, there were some successful cases of Blockchain technology in the humanitarian sector. In 2022, the United Nations High Commissioner for Refugees (the United Nations High Commissioner for Refugees) managed a small pilot to provide cash assistance to the Ukrainians who were displaced by the war of Russia in Stablecoin. The other pilots were tested in Kenya by the Kenyan Red Cross Association. The International Committee of the Red Cross, which works with the Kenya team, also helped develop a human symbol solution (HTS).