The US plans to use blockchain in distributing humanitarian aid
Date: 2025-03-24 Author: Henry Casey Categories: BLOCKCHAIN
The Donald Trump administration is preparing for a large-scale reorganization of the United States Agency for International Development (USAID), including the introduction of blockchain technology to control the distribution of humanitarian aid. As it became known from an internal document distributed among State Department employees and published by Wired, the plan includes renaming USAID to International Humanitarian Assistance (IHA) and transferring the agency under the direct supervision of the Secretary of State.
After the rebranding is complete, the agency intends to abandon the traditional approach to funding, which emphasizes the volume of invested funds. Instead, a payment system focused on achieved results will be introduced. All aid distribution operations will be recorded in the blockchain, which, according to the initiators of the reform, should provide a higher level of transparency and security.
According to the document, the new system will allow for the prompt launch of initiatives that can bring real benefits, rather than just formally meeting goals or spending the budget. Blockchain will be used as a tool for monitoring the effectiveness of projects, but it is not yet clear whether cryptocurrencies or stablecoins will be involved in the reform.
Since the beginning of Trump's second presidential term, USAID has been the focus of the new Department of Government Effectiveness (DOGE), headed by Elon Musk. DOGE has already proposed initiatives to introduce blockchain technologies into the work of various government agencies, citing their potential to reduce costs and improve manageability.
One of DOGE's first steps was sending USAID employees on administrative leave, reducing staff, and suspending some payments to the agency's partners abroad. These measures were implemented after the president's decree of January 20, which caused a wave of criticism both domestically and internationally.
Although a federal court later limited the administration's actions, prohibiting the complete liquidation of the agency, the new document confirms that plans for its large-scale restructuring remain in effect. In the near future, USAID may be fully integrated into the State Department with new functions and governance mechanisms centered on blockchain.
