Blockchain, Crypto coming to Hood?

the U.S. Ministry of Housing and Urban Development (HUD) thinks about employment Coded and Blockchain Technology to monitor the employment of grants for agencies, which some employees believe can be a “experimental tour” for the broader publishing of technology throughout the federal government. This is it According to a report It was published on Friday by ProPublica.

The port composed the report based on a meeting and talks with “three officials familiar with this issue, but a HUD spokesman, the report, said that there are no plans to implement this technology.

The report said: “The concentration of discussions so far has been trying to use basic technology that makes encryption possible – Blockchain – to monitor HUD’s grants,” the report said. Blockchain advocates argue that technology is valuable on its own for such purposes. But the primary use of Blockchain, according to experts, is encryption transactions. “

The employee, who spoke with the director’s port, is not disclosed by his identity about the ability of the plan to succeed, pointing to the unorganized nature of the technology and the 2008 housing crisis as evidence of the need to move forward with caution.

The employee told The Outlet: “It is just providing another unorganized security in the housing market as if 2008, 2009 did not happen.” “I do not see any way this will help anything. I see many ways it can hurt.”

The report also states that the idea is supported by Erfing Dennis, the new financial manager in Hood and the main vice president.

Dennis, the agency’s new deputy director of the agency, is a former partner in the global consulting giant EyAlso known as his original name, Ernest and YoungThe report said. “EY itself involved in the proposal: The company’s executive official discussed the idea with HUD officials last month.”

But Kassi Lowett, Dennis and Hood spokesman, denied the essence of the report in phrases to ProPublica.

“The administration does not have plans for Blockchain or Stablecoin,” said Lowett. “Education is not implementation.”

EyTry’s 3 -conversations were confirmed on the outlet on the outlet, but after he said he would inquire about the possibility of an interview, he did not re -call the director’s correspondents.

According to two meetings on the proposal in February, according to the materials reviewed by ProPublica. A memorandum that was later distributed by a HUD employee in response to the meeting content, the proposal.

The memo said, “Without exaggeration, every implementation that can be imagined in Hood seems dangerous and ineffective,” the memo said. Since the administration does not face the challenges of tracking spending on grants, the introduction of new technology will not be necessary and that the possibility of paying donors in the encrypted currency will also provide fluctuations in the financing system, as the memo added.

“In subsequent discussions with HUD staff, the author of the memo described the proposal as” the beach beach head “in HUD to enter the cryptocurrency, which compared to” Monopoly Money “, the report explained.

The other experts who were interviewed in the report were publicly hostile to the concept, with the previous Securities and Stock Exchange Committee (Second) Corey fraleer tells ProPublica that it will be a “terrible idea”. One of the reasons that make him cite is that the HUD grants in the encrypted currency can fluctuate in value, which will have severe consequences for something like Federal Housing Department (FHA) insurance if provided.

The mortgage industry was widely curious about possible efficiency that could come from encrypted technology and Blockchain technology for some time. the Maintenance Organization for Mortgage Industry (MISMO) in 2023 I released a white paper On this topic, especially after the organizational housing campaign in the years after the 2008 crisis tends to increase production expenses.

The white paper said: “The use of Blockchain has the ability to enhance the gains made in efficiency, security and transparency and reduce the timelines for loan manufacturing significantly by at least 30 % and at least 25 % lower costs than the average industry.”

But in a government environment and in an agency such as HUD, which provides grants to the weak population, providing what some consider an unstable element in critical assistance programs is not worth the potential risks.

“Blockchain technology has been 15 years ago. No one wants to use it,” Hillary Allen, a law professor in American University Whoever studies the wick and regulatory spaces, tell ProPublica. “Now we have an attempt to force the government to use it.” [T]He’s the most vulnerable people [will serve] As Guinea pigs. “

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