Elon Musk’s Department of Government Efficiency (DOGE) has reportedly achieved significant taxpayer savings, totaling $36.7 billion. This accomplishment has led industry leaders to advocate for enhanced transparency in government expenditures through the adoption of blockchain technology.
According to data from Doge-tracker, these savings represent approximately 1.8% of Musk’s ambitious objective to reduce U.S. government spending by up to $2 trillion. Musk detailed this vision during a January 9 interview with political strategist Mark Penn.
Brian Armstrong, co-founder and CEO of Coinbase, commended DOGE’s progress and emphasized the potential of blockchain to provide a transparent foundation for financial systems. He noted that decentralized blockchain ledgers allow for real-time public verification by anyone with internet access.
A blockchain-based treasury could introduce mandatory spending proposals, permitting transactions only if approved by a majority vote from the populace.
In collaboration with the U.S. Treasury, DOGE identified a significant loophole in government spending, amounting to an estimated $100 billion annually. These funds were directed to individuals lacking a Social Security number or temporary identity number, a practice deemed “extremely suspicious” by Musk. He highlighted that internal estimates suggest about half of this amount, approximately $50 billion per year, could be attributed to clear fraud. Musk described this situation as “utterly insane” and called for immediate action.
To address these issues, new criteria have been established for government payments. All transactions must now include a payment categorization code, which was often previously omitted, hindering audit processes. Additionally, each payment must provide a rationale, another detail frequently left blank in the past. Musk also advocated for more frequent updates to the “DO-NOT-PAY list of entities,” suggesting weekly or daily revisions instead of the current annual updates.
Jean Rausis, co-founder of decentralized finance platform Smardex, commented on the potential impact of Musk’s proposal to transition the U.S. Treasury to blockchain technology. He suggested that such a move could position the U.S. as a global leader in blockchain innovation. Rausis emphasized the importance of using a permissionless blockchain to ensure genuine transparency, cautioning that without this, the promised openness could be superficial. He also noted that embracing decentralized infrastructure could serve as a catalyst for merging traditional web2 and emerging web3 technologies.
Since the launch of the official DOGE website on January 21, the agency has achieved substantial savings for taxpayers in a relatively short period. DOGE’s initiatives are scheduled to conclude on July 4, 2026, aiming to establish a more efficient government with reduced bureaucracy. A comprehensive plan is expected to be unveiled on the 250th anniversary of the U.S. Declaration of Independence.
