Elon Musk is looking into using blockchain technology to help reduce U.S. government spending. He aims to cut between $1 trillion and $6.5 trillion from the annual federal budget.

As the head of the Department of Government Efficiency (DOGE), Musk is exploring how blockchain can improve government operations. This includes tracking spending and enhancing accountability.

According to a report from Bloomberg, DOGE is considering blockchain for securing data, making payments, and managing government buildings. This initiative is part of Musk's broader goal to promote efficiency and transparency in government.

The idea of using blockchain for government transparency isn’t new. In April 2024, former presidential candidate Robert F. Kennedy Jr. suggested putting the entire federal budget on the blockchain. He told a crowd in Michigan, “Every American can look at every budget item in the entire budget, anytime they want, 24 hours a day.” He added that with this system, “If somebody is spending $16,000 for a toilet seat, everybody will know about it.”

Kennedy’s proposal found support among advocates for smaller government and sound fiscal policy. They believe that U.S. government spending is out of control.

The Department of Government Efficiency took a big step by launching its website on January 21. They also adopted the DOGE logo, which is linked to the popular cryptocurrency Dogecoin. After the website launched, Dogecoin’s price jumped about 11%, reaching $0.38.

On January 20, Vivek Ramaswamy, a former presidential candidate and co-founder of DOGE, announced he would step away from the project. He wants to focus on his campaign for governor of Ohio. In a post on X, he expressed his confidence in Musk and the team’s ability to streamline government operations.