The Trump administration plans to reform USAID, including renaming it and integrating blockchain technology into its procurement processes. These changes aim to enhance security, transparency, and innovation within the agency.
Restructuring USAID and Blockchain Integration
According to a recently revealed memo, the Trump administration plans to rename USAID as the U.S. International Humanitarian Assistance (IHA). Concurrently, the agency will begin integrating blockchain technologies into its procurement processes, aiming to provide greater security, transparency, and traceability. These changes are designed to bolster innovation in the agency's operations and improve program efficiency.
Possible Blockchain Applications in USAID
The memo suggests using a blockchain ledger to record aid distribution, enhancing transparency and traceability. Another option is distributing monetary aid through cryptocurrencies such as stablecoins, instead of traditional cash transfers. These measures are expected to improve program flexibility and focus on tangible impacts.
Examples of Blockchain in Humanitarian Projects
Blockchain technology has already been used for humanitarian purposes. In 2022, the United Nations High Commissioner for Refugees ran a small pilot project distributing funds through stablecoins to Ukrainian refugees. A similar project was implemented in 2018 by the Kenya Red Cross, using blockchain to record transactions and provide assistance without needing bank accounts. The International Committee of the Red Cross also helps develop the Humanitarian Token Solution, which preserves the privacy of digital cash assistance.
The Trump administration's plans to reform USAID with blockchain integration open new opportunities for enhancing efficiency and transparency in humanitarian aid. Such changes are expected to advance flexible and effective programs focused on innovation and tangible results.
