Analysis: If the US government puts its spending on the chain, it can save more than $10 billion in audit costs in ten years

According to a report by The Kobeissi Letter published on X, Elon Musk and the CEO of Coinbase have proposed putting all US government spending on-chain, which would mean that the $6.9 trillion in annual US government spending would be placed on a decentralized ledger. If implemented properly, this could make US government spending more secure. The explanation is that the ledger could be authorized to limit viewing access, and fraudulent spending would be flagged almost immediately. If handled correctly, it would be nearly impossible to hack. Additionally, the blockchain would be publicly accessible, improving transparency. Currently, the US government's spending database is built in an "append-only" manner, making it nearly impossible to search for specific terms and lacking transparency. For example, after weeks of data mining, the Department of Government Efficiency (DOGE) found 62 contracts worth $182 million, all for "administrative expenses," including a $168,000 contract to host an Anthony Fauci exhibition at the NIH museum, which is just the tip of the iceberg. Furthermore, the US Pentagon was unable to account for 63% of its $3.8 trillion in assets during an audit; the Department of Defense stated that they have $3.8 trillion in assets and $4 trillion in liabilities, with their balance sheet not even balanced. By using blockchain technology, payments could be easily tracked, and audits could even be automated. This is why many major banks are already using blockchain. By 2024, 56% of cross-border businesses will have integrated blockchain technology into their operations. The US Pentagon spent $1 billion auditing its 2018 finances but failed to pass the audit. Their goal is to pass the audit by 2028. Using blockchain could save over $10 billion in costs. Another benefit is the elimination of "ghost beneficiaries," as the blockchain could ensure that only eligible individuals receive assistance programs, pensions, and social security, reducing fraud. In 2022 alone, there were $13.6 billion in "improper" social security payments. The biggest downside is that the plan will face unprecedented legal hurdles and bureaucratic resistance from these inefficient beneficiaries. This is already starting to manifest, as a federal judge has already restricted Musk's and DOGE's access to the payment system. If the US government wants to eliminate deficit spending, it needs to cut $50 billion in spending per day. US spending now accounts for 44% of GDP, the same level as during World War II. Most people would be surprised to find how many "problems" would be solved by eliminating deficit spending.