Trump Administration Explores Blockchain for Foreign Aid in USAID Reform: Report

The initiative seeks to incorporate blockchain technology into the procurement process to improve security, transparency, and tracking of aid distribution.

Key Points:

• The Trump administration is set to revamp USAID, renaming it U.S. International Humanitarian Assistance and placing it under the Secretary of State’s jurisdiction, according to Wired.
• The initiative includes blockchain integration into USAID’s procurement system to improve security, transparency, and traceability in aid distribution.

The Trump administration is planning a USAID overhaul, rebranding it as U.S. International Humanitarian Assistance and placing it under the Secretary of State's authority, Wired reported.

As part of the restructuring, blockchain technology will be integrated into the agency’s procurement system to track aid distributions and implement outcome-based payment models rather than input-based funding.

The memo states that all aid distributions would be secured and tracked using blockchain technology, significantly enhancing security, transparency, and traceability. It also suggests that this approach would promote innovation and efficiency in humanitarian assistance.

It remains uncertain whether the blockchain system would incorporate cryptocurrency or stablecoins or function solely as a digital ledger for tracking aid distribution.

USAID has faced increased scrutiny under the Trump administration, particularly since the creation of the Department of Government Efficiency (DOGE), headed by Elon Musk. DOGE has previously advocated for blockchain-based solutions to improve efficiency.

In a January 20 executive order, President Trump suspended USAID payments, signaling potential reforms in the agency’s operations.