Musk is becoming an important promoter in the digital assets Industry.

According to Bloomberg, Musk has begun discussing the use of blockchain technology in the newly established Department of Government Efficiency (DOGE). He has explored the idea of utilizing digital ledger technology to improve government efficiency and reduce costs with close allies.

The discussions included using blockchain to track federal spending, protect data, make payments, and even manage buildings.

The DOGE team has met with representatives from several public blockchain projects to assess their technical feasibility. According to a source, Musk had recruited about 100 volunteers to write code for the project prior to Trump's inauguration.

Musk is exploring the application of blockchain in enhancing the efficiency of the USA government.

With Trump's inauguration, the pace of implementing crypto-friendly policies is also accelerating.

On Thursday, January 23rd, Eastern Time, the White House announced that President Trump signed an executive order entitled "Strengthening the USA's Leadership in the Digital Financial Technology Sector." The order calls for the establishment of a presidential "Working Group on Digital Asset Markets" within the National Economic Council that advises the president, aiming to improve government efficiency and productivity through modernized government technology and Software.

According to this command, one of the tasks of the Department of Efficiency is to collaborate with the Office of Management and Budget at the White House to identify and implement spending reduction measures, completing relevant recommendations by July 4, 2026.

Since the advent of blockchain, $Bitcoin (BTC.CC)$ it has been regarded as a decentralized and highly secure method of recording trades. Nevertheless, how to effectively utilize blockchain within large institutions remains a challenging topic.

The idea of using blockchain for large projects is not new. Years ago, large companies including Walmart launched blockchain projects, mostly adopting private chains. However, these projects often proved difficult to manage and progress stalled. Many enterprises found that blockchain is not necessarily more economical or efficient than existing database technologies.

Gartner predicted in 2019 that "90% of current enterprise blockchain platform implementations will need to be replaced by 2021" to maintain competitiveness and security.

Sam Hammond, chief economist at the USA Innovation Fund, stated that blockchain within the government could be used to securely and transparently track expenditures, documents, and contracts. However, he also pointed out that traditional databases may also excel at these tasks with fewer drawbacks.

Campbell Harvey, a finance professor at Duke University, emphasized that a major issue with the government using public blockchain is the lack of control.

However, in recent years, some large Institutions have started using public blockchains for commercial purposes. For example, Blackrock has issued money market Funds on multiple Cryptos ledgers, and the California Department of Motor Vehicles has also stored the ownership data of millions of Autos on the Avalanche blockchain.

Editor/rice