Saving $36 Billion: Musk’s DOGE and Coinbase CEO’s Vision for Blockchain in Government

- DOGE saves $36.7 billion - 1.8% reduction in government spending [Unblock Media] The Department of Government Efficiency (DOGE), led by Elon Musk, has achieved a saving of $36.7 billion for U.S. taxpayers. This success is prompting calls from leaders in the cryptocurrency industry to enhance the transparency of government spending through blockchain technology. According to Doge-tracker data, this saving represents 1.8% of Musk's target to reduce U.S. government spending by $2 trillion. Musk outlined this vision in an interview with political strategist Mark Penn on January 9. Brian Armstrong, co-founder and CEO of Coinbase, praised the progress of DOGE under Musk and suggested the adoption of blockchain technology to strengthen the transparency of government spending. Armstrong commented on X (formerly Twitter) on February 9, "DOGE, great progress. If all government spending was transparently recorded on-chain, auditing would be much easier." Decentralized blockchains can enhance financial system transparency by providing a system that anyone can verify in real-time with just an internet connection. A blockchain-based treasury system can manage spending proposals transparently and enable democratic financial management by having a large number of citizens vote to approve specific transactions. Meanwhile, Musk's DOGE identified loopholes in annual government spending worth $100 billion and reached a new joint agreement with the U.S. Treasury. Musk pointed out on X on February 8 that approximately $100 billion in annual entitlement payments are made to individuals without social security numbers or temporary identification numbers, calling this "highly suspicious." He revealed that, after estimating the percentage of clear fraud with Treasury officials, it was concluded that about half, or $50 billion, is likely fraudulent payments. Musk called this situation "completely insane" and urged for immediate action. Following this discovery, new standards have been introduced requiring all government expenditures to include an expenditure classification code and the reason for the expenditure. Previously, this information was often missing, making audits nearly impossible. Efforts are also underway to update the "prohibited payment list" more frequently, from the current annual updates to weekly or daily, to prevent fraudulent payments. According to Musk's proposal, transitioning the U.S. Treasury to blockchain could position the U.S. as the "de facto global leader in blockchain innovation." Jean Rausis, co-founder of the decentralized finance platform Smardex, stated, "It’s hard to say which blockchain would carry out this task, but the important thing is that it must be permissionless. Otherwise, the promised transparency is just a charade. However, if the U.S. Treasury embraces decentralized infrastructure, it could foster the convergence of the Web2 and Web3 worlds." The work of DOGE is set to conclude on July 4, 2026, aiming for a "leaner, less bureaucratic government" in time for the 250th anniversary of the Declaration of Independence. A new plan is expected to be announced at that time. Based on this information, DOGE, led by Elon Musk, emphasizes the transparency and efficiency of government spending, leveraging blockchain technology to achieve cost savings and improved efficiency. This could provide significant benefits to U.S. taxpayers and demonstrate the important role blockchain technology can play in government financial operations. However, a recent federal judge has temporarily blocked Elon Musk's DOGE from accessing the U.S. Treasury's payment system, amid controversy over DOGE's attempts to access sensitive Treasury records. Additionally, Musk's DOGE is rapidly taking over several functions of the federal government, and some federal agencies have already experienced significant changes. This movement is raising concerns among Democratic lawmakers and is likely to face legal challenges. In this context, the discussion on enhancing the transparency and efficiency of government spending through blockchain technology is expected to continue. It will be important to keep an eye on future developments.