The U.S. Department of Housing and Urban Development (HUD) is exploring the potential use of blockchain technology to monitor the proper allocation of budgetary funds.
According to ProPublica, HUD officials discussed the implementation of blockchain technology at least twice in February. The primary topic of these discussions was launching a pilot project to track the designated use of grants using distributed ledger technology (DLT).
Official HUD reps deny any concrete plans for blockchain adoption, but internal discussions are ongoing about testing the technology for tracking grants within low-income assistance programs and exploring stablecoins as a payment tool.
The focus isn’t on cryptocurrencies as a means of payment but rather on DLT-based solutions to monitor budget expenditures. The initiative is led by Irving Dennis, HUD’s Principal Deputy Chief Financial Officer, who believes blockchain technology can improve financial transparency, eliminate intermediaries, and reduce corruption risks.
However, some HUD staff members raised concerns that integrating crypto tools into government finances could introduce additional risks related to asset volatility, fraud, and increased reporting complexity.
Critics of the initiative also argue that implementing new technologies would lead to higher costs, complicate fund management, and potentially jeopardize funding for social programs. An internal HUD memo distributed after the meetings explicitly deemed the experiment “dangerous and inefficient.”
The HUD discussions coincide with the Donald Trump administration’s recent push to support the crypto industry. Just days ago, the White House issued an executive order establishing the Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile.
