US Treasury Department Tests Blockchain Technology

The U.S. Treasury Department, which is responsible for the administration of government revenue, is testing blockchain technology to track federal grant payments.   The pepartment intends to use a proof-of-concept program that will serve as a blockchain-based letter of credit for grant recipients, according to Craig Fischer said. Fischer is the head of the innovation program at the Treasury department and announced this at a conference, according to Federal Computer Week (FCW).  Tokenization helps the Treasury Department with identification  According to the report, the test program uses accreditation tokens to track the flow of funds from federal reserves to recipients. Via tokenization, it should  be possible to identify the number of recipients, the amount of the money and important data such as the time that the tokens were awarded, Fischer continued.  Recipients of grants would have to have an electronic wallet linked to a bank account. Only then can the tokenised letter of credit be obtained. However, access would be limited and not publicly visible unlike the bitcoin network. The Department of the Treasury has been working on this project since September and is cooperating with San Diego State University, Duke University and the National Science Foundation. The supposed completion of the experimental program is scheduled for the end of this month.  Blockchain not the first time topic in the ministry  This is not the first time that the ministry has dealt with blockchain technology; as early as 2018 it was working on a pilot project aimed at developing a blockchain-based prototype. This should enable the management of physical goods such as mobile phones or computers. * Originally published in German at CVJ.ch 

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The CVJ editorial team consists of crypto experts, active in different areas around the blockchain technology. In cooperation with selected authors, CVJ.CH provides a high-quality resource around the distributed ledger technology. Independent and up-to-date reporting according to journalistic standards as well as educational content around the topic blockchain, rounds off the offer. 

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