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.

Treasury_Department_rear_view

(Image source: wikimedia )

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. "

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Central Bank Shanghai Headquarters issued a document: increase supervision and prevention, and combat virtual currency transactions

Source: People's Bank of China Shanghai Headquarters official website In recent years, speculations related to v...

Opinion

Bloomberg Thousands of Words Uncover How SBF's Elite Parents Helped Him Build a Cryptocurrency Empire?

A tall building rises from flat ground, and the success of FTX is not the result of one person's efforts. With the ba...

Opinion

Former close friend to testify against SBF, list of other witnesses revealed.

SBF's trial started on October 2nd, and his once closest friends will testify in court, becoming his biggest threat. ...

Blockchain

Can the combination of decentralized derivative exchanges and account abstraction open up the next incremental entry point?

How much will the target audience expand if decentralized contract exchanges can be logged in using Google accounts?

Blockchain

FTX Founder SBF The Astonishing Fall of the Former Cryptocurrency King

In the development process of a new technology, there will always be a moment when the hype is so common that it is t...

Market

Bitcoin stays stable at $30,000, is this a signal of a bull market?

Since 2023, the Bitcoin market has maintained a continuous growth trend, recently rebounding to over $31,000 in the p...