Chic Chic & Elon Musk defend Blockchain transparency in government spending

Main meals:

• CZ & Musk came out with a proposal to use Blockchain to monitor all the government’s transactions in the name of the state budget.
• Blockchain’s transparency solutions have gained attention due to the increasing global debt and inflation.
• The skeptics argue that Blockchain for government spending may face the risk of corruption or implementation challenges.

The Blockchain transparency choir in government spending

The growth of the growing global government, which now exceeds $ 102 trillion, according to the International Monetary Fund, has become a critical issue around the world. General concerns about the lack of financial responsibility and the growth of unparalleled money supply have fueled the demands to increase transparency in government spending. Moreover, proposals have appeared for more transparency, and governments seem to be Blockchain as a potential solution. In this regard, one of the news times is reported to the government’s proposal to put all public sector expenses on the public Blockchain.

Global debt share by the country. Source: International Monetary Fund

CZ plays a role in transparency on the series

Changpeng Zhao (CZ) recently stressed the importance of Blockchain transparency in public spending during a major industry event. In giving His last opinionHe said , “Unforgettable opinion: All governments must follow all their spending on Blockchain – the notable general professor’s book. It is called “public spending” for some reason.CZ calls for Blockchain transparency, believing that it can reduce corruption and mismanagement of taxpayer funds.

Display and tax revenues in the US federal government (November 2014 – November 2024). source: Charlie Bellylo

Blue -non -Blockchain boundaries

One of the main reasons for the use of a very attractive Blockchain is that it is a system that is uncommible for operation. Once the transactions are written, the system will not allow you to modify or erase them. The combined function of Blockchain technology guarantees that all the government’s spending is perpetuated and available for a general examination. Just think, what if all government expenditures from the projects granted to administrative expenditures are visible on the book of the General Professor? At the same time, such a move towards transparency would significantly reduce expenditures and force the government to really respond to its citizens. This may be a step towards ensuring that “public spending” is really promoted to the level of its name.

Elon Musk and the Ministry of Governmental efficiency (Doug)

Despite its cautious nature, Elon Musk is also involved in the topic of Blockchain technology and is eager to find ways to implement it through the Ministry of Governmental efficiency (DOGE) in the United States of America. It is rumored that the division of Musk is seriously considering using Blockchain to track government spending, data secure, payment management, and possibly more responsibilities such as management.

It aims to reduce trillion from government spending

MUSK was known to have been very direct about this budget reduction that was aimed at, with the goals of its budget in the initial stage as it is a wide range of budgets that reached the level of deficit, which is about one trillion dollars annually, to a decrease of up to 6.5 trillion dollars every year. The most general goal of the DOGE initiative is associated with Musk’s interest in pressing for more transparency in the government to ensure high levels of accountability. The Musk method aims to make the data more clear to those on the side of spending by using the Blockchain concept, aimed at the essence of the issue, and the government was ineffective.

Early Doug movements and mechanical connection

Surprisingly, the Ministry of Governmental efficiency agreed to the use of “Doug”, the participation of a masculine symbol of the famous Mimi coin, Dogecoin. It is definitely a controversial practice, but it certainly added a feeling of interest in the initiative. DOGECOIN’s value jumped about 11 % after launching the main DOGE page. This association has caused attention, whether by design or by chance.

Historical context: financial policy, monetary policy and debt crisis

This sudden struggle for Blockchain also came in the wake of increased concerns over financial and monetary policies around the world.

The end of the golden standard

In 1971, former US President Richard Nixon announced the end of the gold standard by separating the US dollar from the golden standard. Initially, it was framing as a temporary solution to the problem of instability of the dollar. As a result, there was no maximum value of the euro. This amendment was the catalyst for unwanted financial decisions, which was the main reason for the accumulation of debt by the US government, estimated to exceed 36 trillion dollars.

Inflation and reduce the value of the currency

When the government is granted freedom to spend in a way that it deems appropriate, there is no doubt that it may resort to the deficit of spending that is funded by printing money. The rapid expansion of the width of the money caused by these phenomena leads to a decrease in the value of the US dollar, which means that it has a lower purchase force. There is currently a hot discussion, which raises interest in financial infrastructure and digital currencies. The supporter of the idea of ​​fixed assets in the form of Bitcoin is convinced that he will solve this problem.

The treasury crisis waved on the horizon

In May 2023, a report issued by the US Congress Budget Office warned that the US Treasury was on the path of a lack of budget that could lead to the exhaustion of funds and that the annual deficit will double in the next decade. Even the dark side of the economy, such as alternative to money management through Blockchain technologies, can be considered an opportunity by others.

Other voices in favor of the transparency of spending on Blockchain

Think about the impact of these individuals, even as others join them in defending this issue for the government. There is Blockchain and some other major financial figures, as they seek to explore other alternative means to control the power of money.

Robert F. Kennedy Junior

In April 2024, he was a former candidate for the highest political position in the country, Robert F. Kennedy Junior in favor of a transparent financial system. To be accurate, suggest implementing the federal budget through Blockchain by saying: “Every American can look at each budget element in the entire budget, at any time they want, 24 hours a day. We will have 300 million eyebrows on our budget. Someone spends $ 16,000 for the toilet seat, everyone will know that. ” It goes without saying that the budget transparency in light of the general scrutiny will ensure an increase in accountability. Those who share the point of view of people who believe that the current government spends more than enough money will love the idea of ​​the open financial system between other public systems. They will want to see the actual spending data from the government because it will be outside their tax.

Fixed supply assets as a hedge

The victims of the inflation crisis usually find the bitcoin coin as the best alternative because it is one of the asymmetric origins in a specific amount. Trump once declared the idea of ​​addressing the national religion by pushing it with Bitcoin. VANECK, Director of Assets, discussed that by retaining a bitcoin strategy reserve, one can reduce the national debt by 35 % in 25 years. These perceptions are still falling somewhere in the future, not widespread. However, what they do is recognition of the possibility of Blockchain technology as a solution to the debt crisis.

The US government’s spending was out of control. Source: American debt watch

More news: Increased possibility of bitcoin reserves

Sm man and potential risks

However, even with many supporters, there are some criticizing the idea of ​​Blockchain for government use.

Corruption issues

It is clear that the American Senator Elizabeth Warren is strongly opposed to treat him Musk Dogecoin, so she accuses him of allowing him to be a place of corruption. The cost reduction through other options, such as $ 2 trillion over a decade without affecting the necessary programs. Problems are not fake, because the introduction of new technology is a major challenge in the implementation process, and corruption can always be subject to the most honest systems.

Practical implementation

The use of Blockchain technology for government spending brings a wide range of challenges. First, the appropriate Blockchain should be chosen, then you should be compatible with the current government systems, and of course, it must be guaranteed to be easy to use, and the public does not have any problems to reach them. These problems pushed the idea of ​​the Blockchain scale to its borders and applying the real world of government tracking on a large scale. There are no current governments that have successfully implemented the full operating system like this.