Elon Musk Pushes for Blockchain Transparency in U.S. Treasury Operations

• Musk accused U.S. Treasury officials of approving fraudulent payments, prompting demands for oversight reform.
• Advocacy groups sued the Treasury over DOGE’s access to federal financial data, citing privacy and legal concerns.
• DOGE is exploring blockchain integration, with MOVE, Bitcoin, Ethereum, and XRP Ledger among potential options.

Elon Musk has publicly supported the integration of blockchain technology into U.S. Treasury operations to improve transparency. The endorsement follows allegations of fraudulent payments within the department, raising concerns about financial oversight. 

Accusations of Fraudulent Payments

On February 2, Musk accused long-serving U.S. Treasury officials of authorizing unlawful payments that violated congressional funding laws. He condemned the lack of oversight and demanded immediate action.

 In response, Trump’s Treasury Secretary, Scott Bessent, authorized the Department of Government Efficiency (DOGE) to access Treasury Department systems. The move generated controversy as it exposed sensitive financial data, including Social Security and Medicare payment records, to DOGE.

The decision to grant DOGE access to federal financial systems faced legal resistance. Advocacy groups filed a lawsuit against the Treasury Department, arguing that sharing private financial data with Musk and DOGE was unlawful. The plaintiffs stated that individuals providing information to the federal government should not be compelled to share it with external entities, citing legal protections.

Musk Advocates for Blockchain Integration

Following these developments, crypto investor Mario Nawfal asked Musk whether blockchain could resolve transparency issues within the Treasury. Musk responded, expressing support for on-chain Treasury transactions. 

Other industry figures, including Cardano Blockchain CEO Charles Hoskinson, also backed the idea. The endorsement has fueled discussions on how blockchain could be leveraged to enhance financial oversight and eliminate unauthorized transactions within government systems.

Reports indicate that Musk’s agency, DOGE, is actively searching for a blockchain platform to support its operations. A Bloomberg report from January 25 revealed ongoing discussions about blockchain integration within the U.S. government. 

Movement (MOVE) has emerged as a potential candidate, with speculation driving a 12% increase in its token price. While neither Musk nor Movement’s team confirmed the report, industry analysts believe DOGE may consider established networks such as Bitcoin, Ethereum, or the XRP Ledger to support its blockchain ambitions.