Elon Musk Confirms Plan to Put U.S. Treasury on Blockchain Amid Growing Concerns

Elon Musk has solidified his influence within President Donald Trump’s administration after declaring a "financial emergency" during the campaign trail.

Now, as head of the Department of Government Efficiency (DOGE), Musk is pushing an unprecedented plan to place the U.S. Treasury on blockchain technology, sparking fears that the administration is undermining the stability of the U.S. dollar.

Musk, the billionaire entrepreneur turned government cost-cutter, has been leading DOGE since its creation by Trump’s Commerce Department nominee, Howard Lutnick. The department was established to reduce inefficiencies in federal spending and “rip the waste out of our $6.5 trillion budget.”

However, Musk’s latest push for blockchain integration has raised alarms among lawmakers, financial experts, and global markets.

The plan would shift core Treasury operations onto a blockchain, the same technology that powers bitcoin and other cryptocurrencies, including dogecoin—a cryptocurrency Musk has long supported.

Musk, who has repeatedly called dogecoin his "favorite" digital currency, has fueled speculation that DOGE’s policies could favor his crypto interests.

The announcement sent shockwaves through financial markets, with the price of dogecoin surging after Trump’s election victory. Crypto traders anticipate Musk’s influence in the White House will further elevate the meme-based cryptocurrency.

Meanwhile, traditional financial analysts warn that placing the Treasury on blockchain could destabilize government monetary functions.

Critics argue that blockchain technology, while innovative, lacks the regulatory framework needed for managing the world’s largest economy.

Treasury officials, speaking anonymously, have expressed concerns that such a transition could complicate federal financial transactions, potentially delaying Social Security payments, tax refunds, and federal salaries.

Musk’s plan aligns with Trump’s broader pro-crypto stance. Within his first week back in office, Trump followed through on his campaign promise to prioritize cryptocurrency policy.

He ordered the formation of a cryptocurrency working group tasked with drafting new regulations and evaluating the potential for a national cryptocurrency reserve.

Leading the group is venture capitalist David Sacks, whom Trump appointed as the administration’s crypto and artificial intelligence czar. Sacks, an early investor in Solana, a competitor to Ethereum, has been instrumental in shaping Trump’s vision for the U.S. as the “crypto capital” of the world.

At the World Economic Forum in Davos, Trump reaffirmed his commitment to making the U.S. a global leader in blockchain technology and digital assets.

While the White House insists that these policies will modernize the U.S. financial system, critics see them as reckless.

Wall Street analysts warn that placing core Treasury operations on a decentralized ledger could expose the government to cybersecurity threats, unpredictable market volatility, and new forms of financial manipulation.

Additionally, concerns are mounting that Musk’s influence is growing beyond its intended scope. Initially tasked with improving government efficiency, DOGE has rapidly expanded its reach, securing access to federal financial systems and reshaping policies in a way that some lawmakers find alarming.

Opposition to Musk’s Treasury blockchain plan is intensifying. Congressional Democrats have called for urgent oversight hearings, with some warning that Trump’s administration is prioritizing cryptocurrency interests over economic stability.

Sen. Elizabeth Warren (D-Mass.) has vowed to introduce legislation preventing any significant Treasury restructuring without congressional approval.

Former Treasury officials have also criticized the plan, arguing that the current financial system, while imperfect, operates with the necessary safeguards to ensure stability. Blockchain technology, they argue, remains too experimental to handle the scale and complexity of U.S. monetary policy.

Despite the backlash, Musk remains defiant. “The old system is broken,” he said in a recent statement. “Blockchain is the future, and the government needs to embrace innovation instead of resisting it.”

His supporters argue that modernizing Treasury operations could enhance transparency, reduce fraud, and improve efficiency in federal spending.

However, skeptics fear that rushing into blockchain adoption could create unintended consequences, potentially disrupting the economy.

As debates over the plan intensify, the coming weeks will be critical in determining whether Musk’s vision for blockchain integration moves forward.

If Trump continues to support the initiative, the administration could attempt a limited rollout of blockchain technology within select Treasury functions. However, if opposition grows, lawmakers may take legislative action to block any immediate changes.

For now, the controversy underscores the larger battle over financial innovation, government oversight, and the future of digital currencies. With Musk pushing aggressively for blockchain adoption and Trump positioning the U.S. as a global leader in crypto, the stakes have never been higher.