In a move to modernize the way international aid is managed and distributed, the Trump administration is pushing to integrate blockchain technology into the procurement process of the United States Agency for International Development (USAID). The move is not only intended to increase transparency, but is also expected to radically change the way aid is delivered globally.

Blockchain: The Promise of Transparency and Efficiency
According to officials, the adoption of blockchain within USAID would allow every dollar spent and every shipment of aid to be tracked on an immutable digital ledger. This could significantly improve transparency, reduce fraud, and speed up payments to partners on the ground. By providing a real-time, tamper-proof system of record, blockchain is expected to replace traditional paper-based audit trails, which are resource-intensive and prone to errors.

Proponents say the technology will cut administrative costs and increase the ability to monitor aid flows, allowing donor countries and recipients to verify the allocation of funds instantly.

Barriers and Concerns
However, blockchain implementation is not without its challenges. One of the biggest problems is uneven internet access in many developing countries where aid is needed most. At the same time, data security concerns raise questions about the safety of storing and processing sensitive information in a digital environment.

Training on-the-job personnel to use blockchain technology is also a significant barrier, especially since aid projects often take place in remote areas lacking digital infrastructure.

Proposal to Restructure USAID
In addition to integrating blockchain, the Trump administration is considering restructuring USAID by renaming the agency the United States International Humanitarian Assistance (IHA) and placing it under the State Department. According to a memo obtained by Politico, the change is intended to shift USAID’s focus from procedural processes to measurable results.

The proposal comes as the administration creates the Department of Government Effectiveness (DOGE), an initiative led by Elon Musk that aims to streamline federal agencies. DOGE has been controversial for suspending USAID operations, cutting staff, and suspending payments to partners, causing many important humanitarian programs to falter. Although a federal judge later blocked the dissolution of USAID, the new memo suggests the administration still intends to limit the agency’s autonomy.

The Future of US International Aid
The proposed use of blockchain has sparked debate about the role of technology in foreign aid. Can modern tools like blockchain completely replace traditional methods, or is it just a political move to restructure international aid?

Despite its great potential, blockchain also comes with significant challenges, requiring careful investment in technical infrastructure, data security, and human resource training. The final decision will not only shape how USAID operates, but also influence the future role of the United States in providing international aid.

The success of blockchain at USAID will be an important test of the application of new technology in the humanitarian field, while also raising larger questions about how technological innovations should be applied most effectively.