The Trump administration reportedly plans to restructure USAID by renaming it and integrating blockchain technology into its procurement process, a leaked memo reveals.
According to a recent report by WIRED, a government memo that has been circulating among State Department officials reveals the Trump administration’s plans for the United States Agency for International Development.
Originally procured by the media outlet Politico, the 13-page document excerpt outlines structural changes intended for the humanitarian agency under the Trump administration. Aside from changing its name to the U.S. International Humanitarian Assistance or IHA, USAID will reportedly start incorporating blockchain technology into its procurement process.
“All distributions would also be secured and traced via blockchain technology to radically increase security, transparency, and traceability,” stated in the memo.
According to the memo, the use of blockchain technology in the agency is aimed at bolstering innovation and efficiency, as well as allowing for “more flexible and responsive programming focused on tangible impact rather than simply completing activities and inputs.”
In early February, USAID staff were put on administrative leave before Department of Government Efficiency or DOGE (DOGE) slashed it workforce down from 10,000 to 300 staffers. Moreover, the State Department ordered it to stop sending a portion of payments to partner organizations around the world
However, it is still unclear how blockchain technology will play a role in the agency’s day-to-day operations. There are a few possibilities, one of them includes the use of a blockchain ledger to record the distribution of aid, making it more transparent and traceable.
Another possible outcome is for the agency to start distributing monetary aid through cryptocurrencies like stablecoin to its partners instead of cash transfers. Just a day prior, Trump delivered a virtual address at the Digital Assets Summit where he urged the U.S. Congress to pass stablecoin regulations and establish simple rules for stablecoins and market structures.
In the past, there have been instance where blockchain technology have been used by humanitarian organizations. In 2022, the United Nations High Commissioner for Refugees or UNHCR ran a small pilot project which distributed funds through stablecoins to displaced Ukrainians due to the Russia-Ukraine war.
Similarly in 2018, The Kenya Red Cross Society launched a pilot project called “Blockchain Technology in Humanitarian Programming,” in which the blockchain was used to record transactions and to help people receive funds without needing to open a bank account.
The International Committee of the Red Cross, which works with the Kenya team, also helped to develop the Humanitarian Token Solution.
