HUD Explores Blockchain And Stablecoin Integration

According to Cointelegraph, the U.S. Department of Housing and Urban Development (HUD) is considering the use of blockchain technology and stablecoins for its operations. The department, responsible for overseeing social housing, has discussed utilizing blockchain to monitor grants, as reported by ProPublica on March 7. This information comes from a meeting recording, documents, and insights from three officials familiar with the discussions. The idea of experimenting with stablecoin payments to HUD grantees was also considered. This initiative could initially be tested in one of the department's offices before potentially expanding to other offices. HUD, led by Scott Turner, a choice of U.S. President Donald Trump, has been involved in cost-cutting measures inspired by Elon Musk. Two officials expressed to ProPublica that the HUD blockchain experiment might serve as a preliminary test for broader crypto and blockchain applications across the federal government. A recent meeting focused on a project within the Community Planning and Development office, which manages billions in grants for affordable housing and homeless shelters. The project aimed to track funds to one grantee using blockchain. However, the necessity of the project was questioned, with one attendee noting the lack of clear articulation for its need. A HUD official criticized the plan in a staff memo, labeling it as "dangerous and inefficient," and argued that stablecoin payments could introduce volatility. During a subsequent meeting, HUD staff had mixed reactions, with some suggesting that grantees could be paid using crypto, while another official proposed using "a stable currency." A finance official indicated that blockchain implementation would begin within the CPD. Despite these discussions, a HUD spokesperson informed ProPublica that "the department has no plans for blockchain or stablecoin. Education is not implementation." U.S. President Donald Trump has shown strong support for the crypto industry, and the HUD experiment reflects ideas from Elon Musk, who advocates for blockchain use to reduce federal spending. In related news, U.S. Treasury Secretary Scott Bessent stated at the White House Crypto Summit on March 7 that the government is considering the stablecoin regime to maintain the U.S. dollar's status as the dominant global reserve currency.