The US Department of Housing and Urban Development is considering using blockchain and stablecoin technologies for its social housing functions.
Blockchain Technology in Housing
The department, which oversees social housing, has discussed using blockchain to monitor grants. They also contemplated experimenting with paying HUD grantees using a stablecoin, which could initially be tested in one office before broader implementation.
Skepticism and Criticism of the Project
Two officials indicated that the HUD blockchain experiment might be a trial run for using crypto technologies and blockchain across the federal government. However, one meeting attendee said the project's need was 'not well articulated,' labeling the plan as 'dangerous and inefficient.' They expressed concerns over the 'unnecessary complexity' and the volatility added by stablecoin payments.
The Future of Cryptocurrencies in Government Policy
During a follow-up meeting, HUD staff's opinions were more mixed. Some suggested the blockchain project could involve paying grantees in crypto or a 'stable currency.' Meanwhile, a finance official mentioned that the government would carefully consider the stablecoin regime to maintain the US dollar's dominance as a global reserve currency.
Despite interest in implementing cutting-edge technologies, no definitive plans for using blockchain and stablecoin within the department currently exist.
