Musk aims to cut $6.5T in spending using blockchain

Elon Musk is reportedly investigating the potential of blockchain technology to enhance efficiency and reduce federal spending within the U.S. government.

As the head of the newly established Department of Government Efficiency (DOGE), Musk's initiative aims to track and streamline government expenditures.

According to Bloomberg, discussions have included using blockchain for secure data management, payment processing, and building oversight as part of a broader strategy to eliminate between $1 trillion and $6.5 trillion in annual federal spending.

Musk's focus on blockchain reflects a growing interest in leveraging technology for greater transparency and accountability in government operations.

He stated that this approach could help ensure that taxpayers are informed about how their money is spent.

The DOGE has initiated consultations with representatives from various public blockchain networks to explore viable applications for these technologies within government frameworks.

This exploration aligns with Musk's overarching goal of promoting efficiency and accountability in federal budgeting processes.

In a related context, former presidential candidate Robert F. Kennedy Jr. previously proposed placing the entire federal budget on a blockchain, allowing Americans to scrutinise every budget item at any time.

Kennedy's idea garnered support from advocates of smaller government, who argue that current spending practices lack oversight.

The DOGE launched its official website on January 21, adopting the DOGE logo associated with the popular cryptocurrency Dogecoin.

Following this announcement, Dogecoin's (CRYPTO:DOGE) price saw an increase of approximately 11%.

Musk's efforts come amid a broader push by the Trump administration to bolster the digital asset industry and enhance governmental efficiency through technological advancements.

As Musk and his team continue to explore these possibilities, they aim to provide recommendations for cutting unnecessary expenditures by July 4, 2026.