"Cardano Founder Proposes Blockchain Audit for U.S. Treasury's $7 Trillion Budget"
1min read Charles Hoskinson, the founder of Cardano and Input Output Global (IOG), has proposed using Cardano as an audit layer for the U.S. Treasury's $7 trillion budget. In a recent interview with Financial Fox, Hoskinson discussed the potential of blockchain technology to enhance transparency and accountability in government spending.
Hoskinson acknowledged the challenges of overseeing such a vast budget, spanning 200 agencies, commissions, and subgroups. He stressed that traditional oversight mechanisms are insufficient for analyzing the billions of transactions involved. However, he believes that if structured correctly, auditable, transparent, and enhanced with AI, blockchain technology can provide a reliable and trustworthy data source for informed decision-making.
Under the Biden administration, federal spending has been marked by inefficiencies, with funds misdirected to various agencies. In 2024 alone, the U.S. government spent $6.75 trillion, exceeding its revenue and leading to a growing deficit. To address these issues, the Department of Government Expenditures (DOGE), established by Elon Musk under President Trump's order, has been auditing these expenditures to uncover and rectify waste.
Hoskinson also emphasized the importance of privacy in the evolving crypto landscape, particularly with the development of Midnight, Cardano's privacy-focused sidechain. He suggested that for major applications such as government auditing, combining Bitcoin as a secure, value-carrying layer with Cardano and Midnight would create a unified, robust development stack.
Hoskinson's proposal comes after his January 2025 offer to provide Cardano's blockchain infrastructure for free to DOGE. Although DOGE has not yet announced any collaborations with blockchain firms, they have issued a call for help from the public, asking for insights on reducing waste, fraud, and abuse.
Hoskinson's proposal aligns with a broader industry push to integrate blockchain into government operations. Other major players, including Coinbase and Elliptic, have advocated for similar solutions. As the U.S. government continues to grapple with the challenges of managing its vast budget, blockchain technology may offer a promising avenue for enhancing transparency and accountability.
