TechFlow news — On February 10, according to analysis from The Kobeissi Letter on X, both Elon Musk and the CEO of Coinbase have proposed placing all U.S. government spending on-chain, meaning the nation's $6.9 trillion in annual expenditures would be recorded on a decentralized ledger. If properly implemented, U.S. government spending would become significantly more secure. The report explained that access to the ledger could be permissioned to restrict viewing, and fraudulent spending would be flagged almost instantly. If executed correctly, it would be nearly immune to hacking. Additionally, the blockchain could remain publicly accessible to enhance transparency.
Furthermore, during audits, the U.S. Department of Defense was unable to account for 63% of its $3.8 trillion in assets; the Pentagon acknowledges holding $3.8 trillion in assets and $4 trillion in liabilities, with its balance sheet not even balancing. By leveraging blockchain technology, payments could be easily tracked and audits potentially automated. This is precisely why many major banks are already adopting blockchain. As of 2024, 56% of cross-border enterprises have integrated blockchain technology into their operations. The Pentagon spent $1 billion auditing its 2018 finances but still failed the audit. Its goal is to pass an audit by 2028. With blockchain implementation, over $10 billion in costs could be saved.
The Kobeissi Letter also pointed out that the biggest drawback is that this plan would face unprecedented legal hurdles and bureaucratic resistance, primarily from those who benefit from current inefficiencies. Signs of this resistance are already emerging, as federal judges have restricted Musk and DOGE’s access to payment systems.
