Musk has expressed worry about fraudulent government payments without providing any proof and thinks that blockchain may be a solution.
Summary
Elon Musk, the wealthiest person globally, is considering putting the U.S. Treasury on a blockchain network due to concerns about fraudulent government payments. Currently in charge of the interim Department of Government Efficiency, Musk has not provided any proof of his plans. Challenges include scalability, performance issues, and lack of experienced blockchain specialists. Musk’s position in the administration has sparked controversy, with Senator Elizabeth Warren denying his election. The main risk is the potential destabilization of the global financial system.
Elon Musk, the wealthiest person in the world, is considering putting the U.S. Treasury, which manages government assets worth trillions of dollars, on a blockchain network.
Musk has voiced worries about government spending and has brought up the topic of U.S. Treasury officials making fraudulent payments, but he has not provided any actual proof to support his claims.
Musk’s Plan
The billionaire is presently in charge of the interim Department of Government Efficiency (DOGE) under the Trump administration. He often mentions that his major reason for wanting to move to a blockchain network is to save money, but he has not given any information about how much it would cost to set up or operate such a network.
It is also uncertain what the blockchain network may be used for, although Musk has previously proposed that the decentralized technology could be used to collect data on federal spending, control government payments, and even administer infrastructure.
Musk’s team at DOGE has already spoken with many blockchain companies about creating a blockchain network for government usage.
According to official statistics, the government spends more than $100 billion each year on information technology (IT), with about 80% of that amount going into maintaining old, obsolete systems.
However, there are several hurdles associated with placing data on blockchain networks. These include scalability and performance concerns, difficulty with connecting new blockchain systems with legacy systems, and a lack of experienced blockchain specialists to execute specific activities on the networks.
Critics worries
In addition to the technical obstacles, Musk’s position in the administration has sparked controversy. Senator Elizabeth Warren of Massachusetts denounced Musk’s position in the government as an unelected official this week: Warren said in a speech at the Treasury Department, “Elon Musk was not elected to anything by anybody.” Elon Musk did not get a single vote from any Democrat in the United States. Elon Musk did not get a single vote from any Republican in America. Elon Musk did not get a single vote from Independents in America. Elon Musk received zero votes from Libertarians. Wow, not a single vegetarian in the United States voted for Elon Musk. However, Elon Musk is taking control of the authority that rightfully belongs to the American people.
Musk is suggesting that the US Treasury should migrate its operations to the blockchain. This might allow for the monitoring of government expenditures, the management of payments, and the protection of data via decentralized platforms, but the details are yet uncertain.
According to the analysis, the most significant risk is the possibility that the US dollar would lose its dominance in global markets. If blockchain-based currencies take the role of conventional money, it may destabilize the financial system, leaving taxpayers to deal with the consequences while rich investors benefit.
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