U.S. Treasury Tests Blockchain Benefit System

The US Treasury has almost completed testing a blockchain-based system for payoutsfederal benefits. Tests are conducted as part of exploring the capabilities of the blockchain, how it can increase the effectiveness of such operations.

As clarified by the Ministry, todaythe system is at the final stage of a proof-of-concept (PoC) study with the aim of issuing a letter of credit to grant recipients. Testing is scheduled for completion in late January.

Innovation Program Development ManagerCraig Fischer said that federal subsidies will be tokenized on the platform, while the system will monitor the distribution of payments, ensuring transaction security.

Government will be able to view in the systeminformation about the recipient, the amount of subsidies, as well as the dates of their appointment and receipt. To receive a tokenized allowance, the user will need an electronic wallet tied to a bank account.

About two years ago, the U.S. Treasurybegan to explore blockchain technology for tracking smartphones, computers and other tangible assets. However, despite the interest in blockchain, a year ago this executive branch called for tighter regulation of cryptocurrencies for the purposes of national security and protection of the financial system, believing that the lack of regulation in the cryptocurrency sphere contributes to illegal activities and the financing of terrorism.

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