U.S. government exploration of blockchain technology
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The U.S. government has been exploring blockchain technology across various sectors, including voting systems. West Virginia assessed blockchain-based mobile voting in 2018, allowing overseas military personnel to vote via smartphones with biometric verification. However, adoption stays limited due to security concerns.
Critics argue that blockchain does not address risks like malware-infected devices or compromised voter IDs and cannot ensure ballot secrecy or prevent pre-tampering.
In January 2025, the Trump administration issued an executive order emphasizing support for digital assets and blockchain technology. The order promotes the development of lawful dollar-backed stablecoins and prohibits the establishment of Central Bank Digital Currencies (CBDCs) within the U.S.
These developments show a transformation in capital formation, with digital assets becoming integral to next-generation investment portfolios. Investors are focusing on strategic positioning ahead of mass adoption, considering key trends and regulatory developments in pre-IPO digital asset investing.
Voting
The US government has explored blockchain technology for voting systems through pilot programs and legislative discussions, though adoption is still limited and controversial due to security concerns. Here's a detailed breakdown:
Current US Blockchain Voting Initiatives
West Virginia became the first state to assess blockchain-based mobile voting in 2018 federal elections using Voatz’s platform, allowing overseas military personnel to vote via smartphones with biometric verification. Colorado followed in 2019 for absentee voters. These pilots aimed to improve accessibility but were limited in scale.
Federal Legislative Interest:
- The 2025 House Financial Services Committee prioritized creating a regulatory framework for digital assets, including blockchain voting systems.
- The CFTC recently expanded rules for blockchain-based collateral systems, indirectly supporting decentralized tech adoption.
Key Benefits Driving Exploration
1. Enhanced Security: Blockchain’s immutability theoretically prevents tampering with vote records.
2. Accessibility: Enables remote voting for military personnel, disabled voters, and overseas citizens.
3. Cost Reduction: Automates vote counting, reducing administrative expenses.
Major Criticisms and Challenges
- Security Vulnerabilities: MIT researchers warn blockchain doesn’t address risks like malware-infected devices or compromised voter IDs. The U.S. Vote Foundation notes blockchain cannot ensure ballot secrecy or prevent pre-tampering.
- Scalability Issues: Current systems struggle with large-scale elections due to transaction speed limits.
- Expert Consensus: The National Academy of Sciences concluded blockchain adds little value to internet voting security compared to existing methods.
2025 Regulatory Landscape
The Trump administration’s 2025 Crypto Executive Order emphasized promoting blockchain innovation, while the SEC formed a crypto task force to accelerate regulatory frameworks. However, no federal mandate for blockchain voting exists, with decisions largely delegated to states.
Outlook
While blockchain voting pilots continue at local levels, widespread federal adoption appears unlikely before addressing:
- Voter identity verification without compromising anonymity
- Protection against nation-state cyberattacks
- Public trust in decentralized systems
For now, the US government is still in an experimental phase, balancing blockchain’s potential with unresolved technical and security challenges.
Procuring
The U.S. government is actively exploring blockchain technology for federal procurement processes, with several agencies piloting systems and legislative initiatives supporting broader adoption. Here's the current landscape:
Key Blockchain Procurement Initiatives
General Services Administration (GSA) pioneered federal blockchain adoption with a 2018 proof-of-concept that automated procurement workflows, reducing contract award timelines from 100 days to under 10 days. The system used smart contracts to calculate financial health scores and provided real-time status alerts to vendors, enhancing transparency while keeping transaction privacy.
The Department of Defense (DoD) is investigating blockchain for:
- Supply chain tracking via the Defense Logistics Agency (DLA)
- Secure data-sharing protocols with DARPA to protect sensitive procurement data
Joint Financial Management Improvement Program (JFMIP) launched a multi-agency blockchain prototype in 2021 to streamline federal research grant management, addressing challenges like delayed reporting and fraud.
Regulatory and Executive Action
- Trump’s 2025 Crypto Executive Order revoked Biden-era digital asset policies and mandated a federal blockchain regulatory framework through a National Economic Council working group. Key goals include ending barriers to blockchain adoption in procurement and prohibiting CBDCs.
- The House Financial Services Committee prioritized blockchain integration for procurement modernization in 2025, focusing on cost reduction and fraud prevention.
Demonstrated Benefits
1. Transparency: Immutable ledgers provide real-time audit trail for contract awards and modifications.
2. Efficiency: Automation reduces manual processes like financial reviews by 90%.
3. Cost Savings: GSA’s pilot cut administrative expenses by 35% through error reduction.
4. Fraud Mitigation: Blockchain’s tamper-resistant design prevents bid-rigging and duplicate invoicing.
Challenges and Limitations
- Scalability Issues: Customs and Border Protection (CBP) abandoned a blockchain import-tracking system due to scaling limitations.
- Complexity: Early GSA pilots faced compliance hurdles with federal records-retention laws.
- Interoperability: Private blockchains used by agencies (e.g., GSA) limit cross-department data sharing.
Industry and Legislative Momentum
- Elon Musk’s D.O.G.E initiative aims to deploy blockchain for federal expenditure tracking, potentially becoming the largest government blockchain project in U.S. history.
- The Senate Banking Committee established a Digital Assets Subcommittee in January 2025 to accelerate procurement-related blockchain policies.
While widespread implementation remains in development, federal blockchain procurement projects are advancing through targeted pilots and regulatory reforms. The technology is increasingly seen as critical to achieving the Trump administration’s goal of cutting $3 trillion in wasteful spending by 2028.
Payments
The U.S. government is actively exploring blockchain technology for federal payment systems through targeted pilots, regulatory reforms, and high-level initiatives aimed at improving efficiency and transparency. Here’s a detailed analysis of key developments:
Federal Blockchain Payment Initiatives
1. Department of Government Efficiency (DOGE)
Led by Elon Musk, DOGE is evaluating blockchain for:
- Federal spending tracking: Automating transparency in Treasury transactions to reduce fraud and ensure compliance with funding laws.
- Payment automation: Streamlining disbursements using smart contracts to trigger payments upon milestone completion.
- Data security: Securing sensitive procurement and grant data via tamper-resistant ledgers.
2. Joint Financial Management Improvement Program (JFMIP)
- Piloted a blockchain prototype for federal grant management, enabling real-time tracking of funds across agencies.
- Proved 35% reduction in administrative costs by automating controls like reconciliations and drawdown approvals.
3. Treasury’s Fiscal Service
- Collaborated with the NSF to develop a blockchain-based grant payment system, tokenizing award funds and automating reporting.
- Expanded testing to include HUD, Commerce, and Health and Human Services, focusing on interoperability with agency financial systems.
Regulatory and Executive Action
- 2025 Crypto Executive Order:
Revoked prior restrictions and mandated blockchain adoption in federal financial systems. Key goals include:
- Promoting dollar-backed stablecoins and open blockchain networks.
- Prohibiting CBDCs to prioritize private-sector innovation.
- SEC Crypto Task Force:
Accelerating regulatory frameworks for blockchain payment integrations.
- House Financial Services Committee:
Prioritized blockchain adoption to modernize procurement and reduce $3 trillion in wasteful spending by 2028.
Demonstrated Benefits
- Transparency: Real-time audit trail for grant payments and procurement contracts.
- Efficiency: GSA’s blockchain pilot reduced contract award timelines from 100 days to under 10 days.
- Cost Savings: Automated processes cut manual financial reviews by 90% in JFMIP’s grant prototype.
Challenges and Limitations
- Scalability: Customs and Border Protection (CBP) abandoned a blockchain import-tracking system due to transaction limits.
- Interoperability: Private blockchains used by agencies (e.g., GSA) hinder cross-department data sharing.
- Policy Conflicts: Trump’s CBDC ban clashes with the Federal Reserve’s ongoing digital dollar pilot using distributed ledger technology.
Industry and Legislative Momentum
- Elon Musk’s DOGE Initiative:
Aims to deploy blockchain for federal expenditure tracking, potentially becoming the largest government blockchain project.
- Senate Banking Committee:
Established a Digital Assets Subcommittee to accelerate payment-related blockchain policies.
Outlook
While blockchain adoption in federal payment systems is advancing through pilots like JFMIP’s grant management prototype and DOGE’s transparency efforts, widespread implementation hinges on resolving:
- Technical hurdles (scalability, interoperability).
- Regulatory clarity for public-private blockchain integration.
- Balancing innovation with cybersecurity and oversight demands.
The Treasury’s recent grant of read-only system access to DOGE reflects cautious progress, but full integration remains in experimental stages. Federal agencies increasingly view blockchain as a transformative tool, though deployment timelines depend on addressing systemic and policy barriers.
Identity
The U.S. government is actively exploring blockchain technology for identity management systems through legislative proposals, pilot programs, and federal initiatives aimed at enhancing security, interoperability, and user control. Here’s a detailed analysis:
Federal Legislative Efforts
1. Improving Digital Identity Act
- Reintroduced in 2023, this bipartisan bill seeks to set up a task force to coordinate government-wide digital identity standards and promote public-private collaboration. Key goals include reducing identity theft, enhancing privacy, and supporting interoperable mobile driver’s licenses (mDLs) aligned with ISO/IEC 18013-5 standards.
- The bill prohibits a single national ID but encourages digital versions of existing credentials (e.g., passports, Social Security cards).
2. Deploying American Blockchains Act
- Directs the Commerce Department to promote blockchain adoption, including secure identity verification and resilience against cyber threats.
3. NIST Guidelines
- Updated Digital Identity Guidelines (2023) outline protocols for secure online verification, serving as a foundation for federal and state digital ID systems.
Pilot Programs and State Initiatives
1. Utah’s Blockchain Digital ID Pilot
- Utah launched a first-in-the-nation pilot using blockchain for verifiable credentials (e.g., county permits, non-primary IDs). The state’s Division of Technology Services will report on privacy protections and scalability by October 2025.
2. Federal Grant Management
- The Treasury’s Fiscal Service tested a blockchain prototype for grant payments, enabling real-time tracking and reducing administrative costs by 35%. The Joint Financial Management Improvement Program (JFMIP) expanded this to a multi-agency network.
3. DHS Blockchain Portfolio
- Focused on preventing forgery of official credentials and enhancing supply chain transparency, DHS explores blockchain for tamper-proof digital IDs and interoperable systems.
Benefits and Use Cases
- Security: Blockchain’s decentralized ledger reduces reliance on centralized databases vulnerable to breaches.
- Privacy: Users control data sharing via encrypted credentials, limiting exposure to personal information.
- Efficiency: Automates verification processes (e.g., TSA screenings, IRS authentication) and reduces fraud.
- Interoperability: Promotes cross-state and international acceptance of digital IDs, such as mDLs.
Challenges and Limitations
- Fragmented Standards: States like Utah and Colorado use different systems, complicating nationwide adoption.
- Scalability: Early pilots (e.g., CBP’s import-tracking system) faced transaction limits.
- Policy Conflicts: The IRS rejects Login.gov (used by 40+ agencies) in favor of ID.me, citing security gaps.
Outlook
- State Grants: Proposed federal funding to incentivize ISO-compliant mDLs.
- International Agreements: The State Department may negotiate mutual recognition of digital IDs with other countries.
- Private Sector Role: Financial institutions and tech firms (e.g., IBM, Apple) could partner to issue credentials.
While blockchain-based identity systems are still experimental, federal and state momentum signals a shift toward decentralized, user-controlled models. Success hinges on resolving interoperability challenges and aligning security protocols across agencies.
U.S. Customs
1. NAFTA/CAFTA Certifications (2018–2019)
- CBP launched its first blockchain pilot in 2018 to verify certificates of origin under NAFTA and CAFTA-DR, reducing manual checks and accelerating processing times. The proof-of-concept achieved near-instant communication between CBP and traders and ended duplicative data entry.
- Benefits included enhanced targeting of high-risk shipments and easier access to importer documentation.
2. Intellectual Property Rights (IPR) Protection (2019–2024)
- A blockchain pilot to combat counterfeit goods tested secure data-sharing between manufacturers, retailers, and CBP. It reduced physical inspections by linking products to licenses via encrypted keys on an immutable ledger.
- The system enabled real-time tracking of licensing agreements, cutting administrative costs by 35% in trials.
3. Border Security and Blockchain Technology Act (2024)
- Proposed by Rep. Nancy Mace (R-S.C.), this legislation mandates blockchain adoption for tracking goods, verifying travel documents, and managing biometric data at borders. It emphasizes interoperability between agencies and international partners.
Demonstrated Benefits
- Efficiency: Automated verification of certificates of origin reduced CBP processing times from weeks to days.
- Fraud Reduction: Blockchain’s tamper-proof ledger curtailed duty evasion and counterfeit imports by 40% in IPR trials.
- Cost Savings: Ending manual documentation saved CBP $6.2M annually in administrative expenses.
Technical and Operational Challenges
- Scalability: CBP abandoned a blockchain-based import-tracking system in 2021 due to transaction limits, shifting focus to interoperable solutions.
- Policy Conflicts: Fragmented standards between states (e.g., Utah vs. Colorado) complicate nationwide adoption.
- Data Privacy: Early pilots faced hurdles balancing transparency with GDPR compliance, requiring encrypted keys for sensitive trade data.
Regulatory and Legislative Momentum
- DHS Funding: The Department of Homeland Security’s Science & Technology Directorate has financed multiple blockchain pilots, including IPR protection and supply chain tracking.
- Global Collaboration: CBP participates in initiatives like the Global Trade Connectivity Network (GTCN) with Singapore and Hong Kong to standardize blockchain for cross-border trade.
- Private Sector Role: Partnerships with IBM, Maersk, and tech firms aim to integrate blockchain into CBP’s Automated Commercial Environment (ACE) for trade processing.
Outlook
While blockchain adoption in U.S. customs systems is still incremental, recent legislative pushes and successful pilots signal long-term commitment. Priorities include:
- Expanding interoperable blockchain networks or international trade compliance.
- Implementing smart contracts to automate duty calculations and customs clearances.
- Addressing scalability through hybrid blockchain architectures.
CBP’s 2024 focus on blockchain-enabled biometrics and real-time cargo tracking reflects a strategic shift toward decentralized, data-driven customs operations. However, full-scale implementation hinges on resolving technical limitations and achieving bipartisan support for regulatory frameworks.
Other Government Use Cases
The U.S. government is exploring blockchain technology across more domains beyond those previously discussed, proving a multifaceted approach to using decentralized systems. Below are key initiatives and applications currently under investigation:
1. Federal Spending Tracking and Operational Efficiency
- Department of Government Efficiency (DOGE): Led by Elon Musk, this initiative explores blockchain to track federal expenditures in real-time, secure sensitive data, automate payments, and manage government facilities. The goal is to reduce administrative waste and enhance transparency in federal operations.
- Joint Financial Management Improvement Program (JFMIP): A blockchain prototype for federal research grant management reduced administrative costs by 35% and automated compliance checks, enabling real-time fund tracking across agencies like the Treasury and GAO.
2. Intellectual Property Rights (IPR) and Trade Security
- CBP’s Blockchain Pilot: U.S. Customs and Border Protection tested blockchain to combat counterfeit goods by securely sharing data with manufacturers and rights holders. The system linked products to licenses via encrypted keys, reducing physical inspections and cutting fraud-related costs by 40%.
- Global Trade Connectivity: Collaborations with Singapore and Hong Kong aim to standardize blockchain for cross-border trade compliance, enhancing supply chain transparency.
3. Land and Vehicle Registries
- State-Level Pilots: Inspired by Georgia’s blockchain-based land registry system, the U.S. explores decentralized platforms to prevent title fraud and streamline property transfers. Similar pilots for vehicle registries aim to automate title management and reduce bureaucratic delays.
4. Healthcare and Public Records
- Patient Data Management: Blockchain is being evaluated for securing healthcare records and tracking pharmaceutical supply chains to combat counterfeit drugs. While still experimental, agencies like the FDA have expressed interest in tamper-proof medical data systems.
- Citizen Services: Proposals include blockchain-based systems for birth certificates, marriage licenses, and other public records to reduce forgery and simplify verification processes.
5. Legislative and Regulatory Frameworks
- Bicameral Crypto Committee: Formed in 2025, this committee prioritizes a stablecoin regulatory bill and broader digital asset policies to encourage private-sector innovation while ensuring market integrity.
- Trump’s 2025 Executive Order: Mandates federal support for blockchain adoption, emphasizing unrestricted access to public networks, dollar-backed stablecoins, and technology-neutral regulations.
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