Musk Reportedly Weighs Blockchain to Track Federal Spending

Elon Musk is reportedly considering using blockchain technology at the Department of Government Efficiency (DOGE).

Musk, head of the newly created agency, has floated the idea of using a digital ledger to cut government spending, Bloomberg News reported Saturday (Jan. 25), citing sources familiar with the matter.

The discussions have involved the use of a blockchain to monitor federal spending, make payments, secure data and manage government buildings, the sources said. One source told Bloomberg that people connected to DOGE have met with representatives of public blockchains to evaluate their technology.

Created last week amid President Trump’s flurry of executive orders, DOGE’s goal is to update federal software and technology to boost efficiency and productivity within the federal government. The group is expected to make its recommendations for cuts by July 4, 2026.

The group’s efforts come as Trump has been instituting pro-cryptocurrency policies. On Thursday (Jan. 23), he issued an executive order creating The Presidential Working Group on Digital Asset Markets. That group will explore the creation of a “national digital asset stockpile,” possibly made from crypto seized by law enforcement.

“At its core, the order signals a shift in the federal government’s approach to blockchain technology, stablecoins and the broader digital asset ecosystem, emphasizing innovation, regulatory clarity and competitive positioning,” PYMNTS wrote last week.

“For the payments industry, this policy represents both an opportunity and a challenge, reshaping how financial technology is poised to evolve in the U.S.”

In other blockchain news, PYMNTS wrote last week about the importance of privacy in scaling the technology across the financial services sector.

Research by PYMNTS Intelligence has found that blockchain technology offers a number of potential benefits to address the unique needs of regulated industries, finance included.

“As more banks integrate blockchain capabilities, customers will have greater choice in transferring value,” FV Bank CEO Miles Paschini told PYMNTS this month. “We’re blazing the trail for a future where blockchain is just another payment rail.”

But without robust privacy mechanisms, blockchain adoption in financial services could be confined to niche use cases where stringent data protection isn’t needed.

“Ultimately, the relationship between blockchain and traditional finance exemplifies the broader tension between innovation and regulation,” PYMNTS wrote.

“By embracing this paradox and investing in privacy-preserving technologies, collaborative frameworks and regulatory clarity, the financial industry can turn blockchain’s transparency from a challenge into a competitive advantage.”