Elon Musk, known for his innovative ideas, now heads the Department of Government Efficiency (DOGE, coincidentally the same name as the popular cryptocurrency dogecoin).
This new body, created by the administration of President Donald Trump, has the mission of simplify the government apparatus and reduce unnecessary costs.
In this context, Musk has suggested integrating cryptocurrency networks to improve key government processes, Bloomberg reported.
Networks for digital assets as a government tool
Musk has floated the idea of cryptocurrency networks to modernize and make government operations more efficient.
DOGE is considering using public cryptocurrency networks to track federal spending, protect sensitive data, manage public buildings, and make payments transparently.
To evaluate the feasibility of this proposal, The department has already met with representatives of various networks. The conversations seek to identify which of these technologies could best adapt to the needs of the US government, the media outlet states.
Additionally, DOGE is expected to collaborate with the Office of Management and Budget to identify spending cuts and present concrete recommendations by July 4, 2026, symbolic date for government restructuring plans.
How the technology behind cryptocurrency networks works
Cryptocurrency networks operate thanks to several key elements, with distributed ledger technology (DLT) being one of the most relevant. This system, decentralized and synchronized between multiple nodes, allows you to track transactions and inventories transparently and securely.
Additionally, networks use consensus algorithms, such as Proof of Work (PoW) or Proof of Stake (PoS), to validate transactions and maintain data integrity. Participating nodes are responsible for storing and validating information, while virtual machines, such as the Ethereum Virtual Machine (EVM), allow the execution of smart contracts and decentralized applications.
However, it is important to recognize that, although these technologies have great potential, They are not a universal solution for all problems. For example, in processes such as government elections, cryptocurrency networks can guarantee the integrity of the stored data, but not necessarily prevent irregularities in other stages of the process, as explained by Criptopedia, the educational section of NoticiasVE.
The impact of the Trump administration on the cryptocurrency industry
Musk’s proposal It is part of a broader landscape of initiatives related to digital assets promoted by the Trump government.
Last week, the president signed an executive order creating a strategic bitcoin (BTC) reserve, which demonstrates renewed interest in fostering a more favorable environment for the cryptocurrency industry.
Elon Musk’s proposal to integrate cryptocurrency networks into the government could mark a turning point in public administration. Although there are still technical and regulatory challenges to overcome, the initiative reflects a significant shift in the way the US government is approaching technology and its role in administrative efficiency.
With the possibility of these tools transforming key sectors, the impact of this proposal could go beyond bureaucracy, consolidating cryptocurrencies and their underlying technology as pillars of innovation in public policies.