Could Blockchain Become the New Safeguard for Humanitarian Aid?

A persistent rumor stirs Washington: USAID, the pillar of international assistance, could metamorphose under the influence of Trump advisors.

A persistent rumor has been stirring in Washington since Monday: USAID, the pillar of international assistance, could be undergoing a metamorphosis.

According to information gleaned by Cointribune, Trump advisors are proposing to inject a dose of crypto into the agency's bureaucratic veins. The stated goal is clear: to track every dollar, put an end to leaks, and redefine transparency. A bold shift that combines technological innovation and political calculation.

Structural reform under the sign of crypto

The United States Agency for International Development (USAID) might soon take on a new name – United States Agency for International Humanitarian Assistance – and a new roadmap.

This institutional transformation, which would place the agency under the direct supervision of the Secretary of State, is part of a broader administrative reform launched by the Trump administration in January.

As part of this initiative, an internal document leaked to the press mentions the surprising integration of blockchain technology.

"The administration plans to use the technology to 'secure and trace the distributions' of aid funds, rendering each transaction permanent in a digital ledger that cannot be altered," reports the CCIV.

This would involve recording every fund transfer in real-time and rendering each step immutable, from Washington to the final beneficiaries. Blockchain would act as a virtual notary, validating each stage of the operation.

This promises a revolution for programs that are often undermined by corruption or become the subject of rumors of inefficiency. However, this ambition contrasts with the complex reality on the ground.

In January, USAID had to suspend its payments due to a legal setback linked to a lawsuit filed by a seafood importer against the "Clean Carbage" program, which aimed to reduce food waste in Southeast Asia.

The suspension of payments, which began on January 11, had a significant impact on ongoing projects. Seafood importer Northeast Seafood had sued the administration over a trade dispute, leading to a ruling that forced the government to suspend most foreign assistance payments.

The administration was attempting to restructure the agency with the help of the Government Efficiency Department (DOGE), an entity that is curiously said to be "managed by Elon Musk."

This unexpected partnership highlights the alliance between techno-utopianism and political pragmatism that is driving this initiative. It remains to be seen whether the marriage between bureaucracy and crypto will withstand the realities on the ground and the legal setbacks.

Transparency or technological mirage?

Beyond the promises of traceability, the issues at stake are far thornier. Can crypto really serve to clean up humanitarian aid, as some hope?

The immutability of records could certainly deter misappropriation, and the anonymity of beneficiaries, often a point of contention, would be safeguarded. However, it poses a paradox in terms of transparency.

Moreover, the stability of crypto, often subject to volatility, will need to be proved in a sector where every penny counts and programs are closely scrutinized.

This initiative also reveals the Trump administration's bet on a disruptive effect to restore the image of an agency that is frequently criticized for its cumbersome nature and lack of agility.

But this modernization also hides a desire for increased control. By placing USAID under the aegis of the Department of State, Washington would centralize the management of aid, blending diplomacy and assistance. A risk of politicization, according to some NGOs, who are already warning against any instrumentalization of funds.

Finally, the technical question remains. The most vulnerable regions, which often lack digital infrastructure, could be excluded from this system.

Training local actors, securing crypto wallets, or even ensuring access to the internet would become essential prerequisites. A colossal challenge that would demand additional investments.

Without support, blockchain risks widening the inequalities that it claims to solve, while Michael Saylor warns: without bitcoin, the euro is doomed!