Musk suggests blockchain for treasury amid fraud claims

Elon Musk has accused U.S. Treasury officials of violating laws by approving fraudulent or unauthorised payments, sparking a debate about integrating blockchain technology into government operations.  

"Career Treasury officials are breaking the law every hour of every day by approving payments that are fraudulent or do not match the funding laws passed by Congress," Musk stated in a post on X.

He cited Section 3325 of the U.S. Code, which requires certification from agency heads before payments can be authorised.

The suggestion to use blockchain came after widely followed X user Mario Nawfal proposed placing the Treasury on a blockchain system to enhance transparency and accountability.

Musk responded with a simple "Yes," signaling his support for the idea.

This conversation follows reports that Musk’s Department of Government Efficiency (DOGE) is exploring blockchain technology to track federal spending, secure data, and streamline payments.

DOGE, an entity tasked with reducing federal expenditures and removing unnecessary regulations, has faced lawsuits since its establishment under President Donald Trump’s administration.

Critics have raised concerns about DOGE’s involvement in Treasury operations, particularly its access to payment systems.

Some lawmakers worry this could lead to conflicts of interest, especially as certain contractors impacted by DOGE's measures compete with Musk’s companies.

Musk defended DOGE’s actions, claiming his team uncovered systemic issues within Treasury processes.

He alleged that payments were approved for “known fraudulent or terrorist groups.”

The idea of using blockchain aligns with Musk's broader vision of leveraging technology to improve government efficiency.