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Elon Musk, who leads President Donald Trump\u2019s Department of Government Efficiency (D.O.G.E.), has called out the U.S. Treasury for approving fraudulent payments and suggested blockchain as a solution.<\/p>\n
His remarks came in response to concerns about inefficiencies and mismanagement in the Scott Bessent-led department.<\/p>\n
The controversy started when Musk took to X on February 2, stating<\/a> that career officials in the U.S. Treasury were \u201cbreaking the law every hour of the day\u201d by approving unauthorized and unlawful payments. Earlier, without offering proof, he claimed that these officers were under instructions always to approve payments, even to \u201cknown fraudulent and terrorist groups.\u201d<\/p>\n His remark was quickly picked up by crypto commentator Mario Nawfal, who then\u00a0asked,<\/a> \u201cShould the Treasury be put on the blockchain so this doesn\u2019t happen?\u201d Musk\u2019s response was a decisive \u201cYes!\u201d igniting discussions on whether distributed ledger technology could help streamline federal government practices.<\/p>\n Advocates argued that moving Treasury transactions on-chain would create an immutable, real-time record of every dollar spent. They suggested that this level of transparency could help eliminate backroom deals, misallocated funds, and hidden handouts.<\/p>\n Contributing to the conversation, Nawfal detailed<\/a> how the Treasury executed transactions worth trillions daily, but its systems remain opaque and inefficient, enabling fraud and mismanagement. He claimed that on-chain transactions could ensure a fraud-proof system, effectively stopping off-the-books deals and cases of missing funds.<\/p>\n Podcast host Lindsay Poss highlighted<\/a> Ukraine\u2019s Transparent Network as a real-world example of blockchain in government finance. She noted that the system tracks reconstruction funds, helping combat the estimated 40% of aid lost to corruption.<\/p>\n Others echoed similar views, with X user Keeny mentioning that real-time tracking could revolutionize large financial systems. However, some, like Aquino, a crypto trader and analytics developer, were more cautious. They suggested<\/a> that there could be challenges in implementing such a shift, including political resistance and the complexity of overhauling legacy infrastructure.<\/p>\n Musk\u2019s remarks come in the wake of reports<\/a> that D.O.G.E. may have gained access to sensitive taxpayer data held by the U.S. Treasury in an attempt to \u201cillegally withhold payments\u201d to various government programs.<\/p>\n Last month, the Tesla CEO found himself on the wrong end of a lawsuit<\/a> by the U.S. Securities and Exchange Commission (SEC), alleging he failed to disclose his X holdings within the required timeframe after acquiring over 5% of the social platform\u2019s stock.<\/p>\n He is currently the sole head of the D.O.G.E task force following the resignation<\/a> of co-lead Vivek Ramaswamy in January. The billionaire businessman previously warned<\/a> that some of the measures his team would enforce could possibly slow down the growth of Bitcoin\u2019s value.<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\nMusk Under Fire<\/h2>\n
\nBinance Free $600 (CryptoPotato Exclusive): Use this link<\/a> to register a new account and receive $600 exclusive welcome offer on Binance<\/b> (full details<\/a>).<\/p>\n