U.S. Treasury Department uses blockchain technology to track government funding

According to foreign media reports on January 11, the US Treasury Department is conducting a blockchain-based test to discover the value of this technology in improving operational efficiency.

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Craig Fischer, innovation program manager at the US Treasury, said the agency is about to complete a blockchain-based proof-of-concept project for federally funded recipients.

Speaking at a recent conference called "Modernization of the Federal Financial System," Fischer said that the program will tokenize e-letters of credit issued by the federal government to recipients to help track their grants, and Make transactions more secure. Through tokenization, the agency can track the flow of disorder from government treasuries to recipients. He said that the token is not an actual cash exchange, but a form of performance that can more effectively track payments. Its related data includes the identity of the recipient, the amount of the grant, and key dates (such as the time of grant).

According to Fischer, blockchain-based letters of credit provide point-to-point transfers to primary and secondary recipients. He said that recipients must have an electronic wallet associated with a bank account in order to receive tokenized letters, and for security reasons, only the recipients can access the letters themselves. He said, "This is not the Bitcoin network, everyone can see everything."

Fischer told the media at the event that his innovation team has been working with San Diego State University, Duke University, and the National Science Foundation on the project since September. The project will end at the end of January.

For several years, the US Treasury Department has been studying how to use blockchain technology. In 2018, the department participated in the development of a pilot project for the management of blockchain prototypes of physical assets such as computers and mobile phones, when the department stated that blockchain technology "replicates the tedious reconciliation involved in many financial transactions Great potential in terms of operation. "