Highlights:
- The Trump administration plans to integrate blockchain into USAID’s aid distribution processes.
- USAID may be renamed IHA and placed under the Secretary of State’s control.
- Blockchain in aid projects raises concerns about infrastructure, privacy, and staff training.
Donald Trump’s administration plans to use blockchain technology in the procurement and distribution processes of the United States Agency for International Development (USAID). USAID plays a key role in global humanitarian aid and development efforts.
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According to an internal memo obtained by WIRED, the administration plans to rename USAID as the United States International Humanitarian Assistance (IHA) and place it directly under the Secretary of State. The memo emphasizes that all distributions would be “secured and traced via blockchain technology” to significantly improve security, transparency, and traceability.
It is still unclear how blockchain will be used in the agency’s daily operations. One possibility is using a blockchain ledger to record aid distribution. This would make the process more transparent and traceable.
“It feels like a fake technological solution for a problem that doesn’t exist,” says one expert. https://t.co/Y9t4cc2Y3K
— WIRED (@WIRED) March 20, 2025
USAID Restructuring and the Role of DOGE
This proposal comes as USAID restructures following the creation of the Department of Government Efficiency (DOGE). Led by Elon Musk, the Department has placed USAID staff on leave and reduced its workforce.
Additionally, it instructed to halt sending a portion of payments to partner organizations globally. A federal judge later blocked USAID’s full dismantling. However, the new memo suggests the administration still plans to limit its autonomy and merge its functions into the State Department. As the Trump administration progresses, lawmakers and aid groups will evaluate the impact of blockchain on USAID and aid delivery.
Blockchain in Humanitarian Aid
Supporters believe blockchain can cut costs, prevent corruption, and ensure transparent fund allocation. However, implementing it in remote aid projects requires strong digital infrastructure, data privacy measures, and staff training.
Humanitarian organizations have previously used blockchain technology. The United Nations High Commissioner for Refugees (UNHCR) ran a pilot project using stablecoins to distribute funds to displaced Ukrainians affected by the Russia-Ukraine war. In 2018, the Kenya Red Cross Society launched a pilot project called “Blockchain Technology in Humanitarian Programming.” It used blockchain to record transactions and enable people to receive funds without a bank account.
However, digital anthropologist Margie Cheesman stated in her last year’s research that blockchain rarely improves humanitarian projects. She noted that it is mainly used to attract funding. Her study of an unnamed program found that blockchain increased costs without significant benefits. Many aid workers also lacked basic knowledge of the technology.
In January, Bloomberg reported that Elon Musk is exploring blockchain technology to enhance US government operations. His focus includes tracking federal spending, securing data, streamlining payments, and managing government assets. Sources say D.O.G.E. has evaluated public blockchain platforms to explore their use in government processes.
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