USA: Ministry of housing construction is considering blockchain use in the allocation of funding
- The US residential construction minister is intended to use blockchain use for the allocation of residential grants, but insiders fear mismanagement from the authority due to bad experiences.
- The crypto-friendly attitude of the Trump administration heats speculations, but this is denied by official plans for the introduction of blockchain or stablecoin.
A report From Prublica According to the U.S. Ministry for Housing and Urban Development (HUD), the use of cryptocurrencies and blockchain technology is considering pursuing federal housing grants. Internal discussions within the HUD examined the integration of crypto and blockchain into its financial supervisory systems.
Sources that are familiar with the matter stated that Hud officials had discussions about the use of blockchain to monitor apartment grants. While the supporters argue that the technology could improve transparency and efficiency, critics fear that a poorly planned introduction could destabilize the housing assistant. An insider warned:
“This means that only another unregulated security is introduced to the housing market as if there was no 2008 and 2009.”
Despite these discussions, the Hud has denied any official plans to introduce blockchain or cryptocurrency payments. The spokeswoman Kasey Lovett rejected speculation and explained:
“The department has no plans for blockchain or stablecoin. Education is not an implementation. “
The role of EY and the crypto affinity of the Trump administration
This initiative focuses on Irving Dennis, the newly appointed deputy chief of the HUD and former manager of Ernst & Young (EY). The global consulting company was involved in the talks. Ey leadership Robert Judson confirmed that talks have taken place. Judson said:
“As a company, we have had discussions with selected people in this authority.”
The Trump administration has proven to be particularly crypto-friendly because the president himself has significant financial connections to digital assets. His government not only relaxed the control of crypto companies, but also set up a strategic Bitcoin reserve after the opening of the reserve, Bitcoin’s value crashed by $ 5,000 in just one hour.
The HUD blockchain initiative signals another way in which the government could integrate cryptocurrency into government work. The Trump consultant Elon Musk has already indicated that blockchain could be used to monitor federal expenditure, which heats out speculation about wider plans for integrating the technology into public finances.
Stable coin experiment sparked controversy
One of the more controversial proposals that are currently being examined is the possible use of stablecoins-a form of digital currency that is linked to an external asset such as the US dollar-to pay HUD subsidies. Critics fear that even stable coins are exposed to fluctuations and refer to one incidentFrom 2023 in which a large stable coin briefly lost 13 % of its value.
Former SEC official Corey Frayer condemned the idea and called her “a terrible idea” that he warned that the inclusion of stable coins in the $ 1.3 trillion could have far-reaching consequences.
While some Hud officials were skeptical, other possible advantages saw. A finance officer suggested that the blockchain initiative beyond housing development could be extended to programs such as the review of the right to claim for tenants for state-funded apartments.
“We consider this for the entire company.”
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