The U.S. is discussing blockchain and stablecoins for housing subsidies – Will it happen?

The U.S. Department of Housing and Urban Development (HUD) is considering the use of blockchain technologies and stablecoins for payment and monitoring of federal subsidies, according to an investigation by ProPublica.

According to internal documents and meeting records, HUD is exploring the possibility of tracking allocated funds via blockchain and even paying subsidies using stablecoins.

This could be the first test for broader adoption of cryptocurrencies and blockchain in the U.S. federal administration.

What exactly is the Department of Housing discussing?

According to the report, HUD is exploring two main scenarios:

• Using blockchain to monitor federal housing subsidies.
• Paying subsidies with stablecoins, initially just as a pilot in one of the agencies.

The project was discussed in February at the Office of Community Planning and Development (CPD), which manages billions of dollars for public housing and homeless shelters. Here’s what officials shared:

This could be the first step toward using blockchain across all federal agencies.

Mixed opinions – Risky experiment or future of government finance?

The project is sparking differing reactions among HUD staff.

Criticism of the idea

• Some staff believe the project is unnecessary, risky, and inefficient.
• In an internal memo, a senior HUD official called the proposal “unneeded complication.”
• The main concern is that stablecoin payments may lead to volatility.

Support for blockchain

• Other experts believe the technology could improve transparency and tracking of government spending.
• A HUD financial officer suggested piloting blockchain starting with CPD.

Blockchain may be the future of financial management.

said a HUD official.

How does this fit into U.S. crypto policy?

HUD’s interest in blockchain is not an isolated case, but part of a broader strategy to reduce federal expenses through crypto technologies.

President Donald Trump supports the crypto industry

• He maintains close ties with Elon Musk and is expected to promote blockchain use for optimizing federal spending.

U.S. Treasury Secretary Scott Bessent confirms stablecoin plans

At the White House Crypto Summit on March 7, Bessent said:

We will consider a stablecoin framework to preserve the U.S. dollar as the world’s leading reserve currency.

Will blockchain become part of government payments?

Despite initial skepticism, if HUD begins test payments of subsidies via stablecoin, this could pave the way for widespread blockchain adoption in federal administration.

What could follow?

• If the pilots succeed, other federal agencies may adopt similar solutions.
• The U.S. could use stablecoins for international transactions, reducing reliance on traditional banking systems.
• New regulations may follow to ensure security of crypto transactions in the public sector.

Will the U.S. government use blockchain?

• HUD is discussing stablecoins and blockchain for monitoring and paying subsidies.
• Opinions are divided: some see it as an innovative solution, others as unnecessary complexity.
• If the experiment succeeds, it may open the door to crypto in federal administration.

What’s next?

• Will the White House approve broader blockchain use in the public sector?
• Could this mark the start of a new era in government payments?

We await developments in the coming months.