The US housing agency considers the launch of the crypto experiment

The American Housing Department and Urban Development develops the first steps for the use of Kryptočurri, according to the meeting and other materials that reviewed the drench and the three officials are familiar with this issue. Two officials have said the contributions to believe that the initiative can be trial to use crypto throughout the federal government.

The discussions caused concern among some of the department, especially the perspective of paying recipients of the main federal grants in the cryptocurious, unsafe digital means associated with financial speculation, dramatic swings in value and transnational criminal.

The focus discussion has so far experimented with the use of basic technology that allows the CRYPTO – BlockcAin – for the HUD grant monitor. Blocky’s lawyers claim that the technology is independently worth such purposes. But the primary use of BlockCain, according to experts, is for the crypto transactions.

“It’s just bringing another unregulated safety in the housing market like 2008. years, 2009. did not happen,” said one Hud Staffer, referring to mortgage on the mortgage on subprimina. “I don’t see any way to help anything. I see many ways that could hurt,” said the official, who, as well as the other in this article, said about the state of anonymity for fear of retaliation. HUD discussions covered potential use of stablecoin, a form of crypto, which was mitigated by another property to avoid wild swinging, although such swings occurred in the past.

The idea of ​​Blocckain is pushed, the HUD official told colleagues and Irvin Dennis. Dennis, a new director of the Agency, a former partner is in a global consulting gigantic Ei, is also known for its original name, Ernst & Young. I also included in the proposal: The Executive Authority of the company discussed the idea with HUD officials last month.

The Cripto industry found an allies in President Donald Trump, whose administration was tapped industryamplification to lead federal agencies, backed Research to crypto firms and was created “Strategic Bitcoin Reserve. “(Bitcoin submerged $ 5,000 within an hour news of the opening of a reservation on Thursday.) Trump is Significant financial interests U crypto. On Friday, the White House is scheduled to host a “crypto summit” with leading data from the industry.

The proposal of the HUD indicates a new way that the administration can endeavor to strengthen the industry: including blockage and possibly cryptocurries in routine consumption and accounting practices of federal agencies. It’s a move that would align with appeal Trump advisor Elon Musk to use Blockcain to monitor federal spending.

Dennis and Hood spokesman Kasey Lovett both refused the accounts of their colleagues. “The department has no plans for Blickchain or Stablecoin,” Lovett said. “Education is not applicable.”

Robert Judson, Eki Executive Director who took part in the conversations, confirmed that they take place. “We as the company we had discussions with the choice of individuals in that agency,” he said when he arrived on the phone. Judson said they lost that he would seek the EI approval for a complete interview, and then he did not call himself.

White house, ei and musk have not answered the comment requests.

HUD officials held at least two Blockoin proposal meetings last month. The list of participants at the first meeting included staff from the Office of CFO and community planning and development. CPD manages billions in grants that support people with low and moderate incomes, launched homeless shelters, support disaster recovery, survivors in family and build parks, sewage and centers in the community. It was the CFO Office, which called for a meeting, one person said to the Propa.

He was also stated as a meeting student Judson from the EI. For years Judson advocated a block, a digital book of sorting that creates an immutable record of transactions saved on multiple computers. Technology amplifiers It threw as a way to cut intermediaries such as banks and credit card companies from financial transactions and make these transactions more transparent and safer. Judson wrote Yes Blockchain can help organizations prevent money from being echoed for unintentional purposes. “As digital resources such as stable coins or digital currencies, refrain, stronger applications will appear for integrated value exchange,” he wrote. Dennis, who served as a Hood CFO in the first Trump administration, also wrote, in the book 2021. years, that the Agency should use technology such as “Blockckain, Robotics and Financial Management Systems and Systems and Following Generation.”

Stablecoins supports reserves, including traditional currency, goods and securities. It should ensure that their value – as opposed to, say, Bitcoin – does not fluctuate. However, at Several highly profile occasionsThe value of stablecoins did just that.

At the HUD meeting, participants discussed the “evidence of concept” project in which the CPD will start following the funds that go to the CPD approval and possibly suburcipial ingredients on Blockoin. The need for the project is “not well articulated”, later the participant later wrote on the notes.

After the meeting, the HUD official wrote and expanded the note within the Agency who withdrew the idea. “Without exaggeration, each conceivable application of this on HUD looks dangerous and inefficient,” memory reads.

HUD There is no difficulty in monitoring grant consumption, the Memorandum claimed, making new technology unnecessary. Involvement that it would be long-term, complicated and requires extensive training. And if the project involved that the payment of grants in the cryptocurlenition instead of dollars would inject the instability and unpredictability into the funding course, even if the currency was stablecoin.

In subsequent discussions with HUD employees, the author describes the proposal as the “beach” at HUD for the introduction of cryptocurri, which is the author compared to “monopoly”.

CPD officials continued to raise concern in monitoring the meeting, whose recording reviewed the drap. (Judson did not attend this.) Some starting point saw merits in the idea of ​​Blockckain, suggesting that it can reduce incorrect grant recipient and enable reporting and monitoring their consumption.

“Maybe we have something we could learn from it,” said one, “especially if we feel like a wider federal government moving towards some kind of stableCoin option in the future.”

One official asked why the Agency considered the project. “Because it’s sexy,” someone replied. The second said, “The IRV asked us to continue to continue Blockain, so we look at it,” Dennis.

Many details remained inexplicable at the meeting, including, crucial, would the proposal involve that the payment of the recipient is in cryptocurrency. But some signaled it.

“You can do it with what they would fasten to a stable currency. It would be on the vault and I think they’re going that way already, because what’s worth”, said one official. “That would simulate a dollar.”

Another added, “Basically, it would be a cryptocurrency associated with the American dollar on one basis.”

The finance officer suggests that the idea could be applied wider wider throughout HUD. “We look at this for the entire company. We just wanted to start in CPD,” he said. The Agency also considers the idea of ​​the Office of Public and Indian housing, he said, for “eligibility of tenants and such things.” This office serves millions of people living in a public and federally subsidized housing.

This is not the first time that federal officials considered the government in working with Blockurchain. Agencies involving the Ministry of Finance, the Trade Department, even HUDs were involved in the study, prototype and working group in recent years. But those who monitor the crypto industry were not aware that the width of the technology was in the Federal Government as they recently discussed HUD officials.

Some experts crypt suspicious. “It’s a terrible idea,” said Corey Frayer, a former official in the US Securities and Exchange Commission, where he focused on crypto markets and financial stability. “It’s absolutely wild to make anyone in view.”

Fraier, now in America, warned that Hood grants pay in Stablecoin in value. The greatest concern expressed that the proposal could have extended to other parts of the Agency. If this is included, for example, the introduction of stablecoin in $ 1.3 trillion In mortgage insurance provided by the Federal Housing Administration, fluctuations worth Stablecoin could have a great economic impact, he said.

“Imagine the world in which all participation in the residential industry, it fell in value for 13%,” said that a stablechoine in which she briefly fell into that environment briefly “” said to be a briefly stabilical PAO 13 cents below Dollar. “It’s hard to imagine it wouldn’t be catastrophic.”

Hilary Allen, a professor of law at the American University who explores financial regulation and technology, noted that some high attempts to use blocks for the purpose unrelated to cryptocurrencies failed. She expressed skepticism that technology would be better in the context of government grants, where bad outcomes could harm those who depend on HUD funding to survive.

“Blocckain technology was about 15 years old. Nobody wants to use it. And now we have an attempt to force the government to use it,” she said, with the “most vulnerable people” that serve “as guinea pigs.”