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The US Treasury Department is concluding a series of tests of a blockchain-based platform that monitors grant payouts. Program manager Craig Fischer reveals that the agency is nearing the completion of a proof of concept program that would track the letter of credit for recipients of financial grants.
The blockchain-based program tokenizes letters of credit which are transferred to grantees through peer-to-peer transactions, reports FCW. The process enables the Treasury Department to monitor the release of grant payouts from the government’s purse to qualified recipients. The tokens also store pertinent data including grant amount and grantee information. To securely receive the grant money, recipients would have an electronic wallet that’s linked to a bank account.
Fischer, who unpacks his thoughts on blockchain in a Nextgov article where he deliberates the billions of dollars governments and private corporations have made in the “technology that underpins Bitcoin,” affirms that the new US Treasury platform is a private system, as opposed to a decentralized open network that can be viewed by the public.
Says Fischer,
“This isn’t the Bitcoin network where everything is visible to everyone.”
The development follows remarks made by US Treasury Secretary Steven Mnuchin, an outspoken critic of Bitcoin and cryptocurrencies that have popularized blockchain technology, calling the digital assets a “national security issue”.
While speaking at a House Financial Services Committee hearing last month, Mnuchin also dismissed the idea of creating a central bank digital currency.
He remarked,
“Chair Powell and I have discussed this. We both agree that in the near future, in the next five years, we see no need for the Fed to issue a digital currency.”
[adinserter block="1"]Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Steve Heap
