A memo that has circulated among staff at the State Department, and reviewed by WIRED, reveals that the Trump administration intends to rebrand the United States Agency for International Development (USAID) as US International Humanitarian Assistance (IHA) and place it directly under the jurisdiction of the secretary of state. First reported by Politico, the document indicates that part of this reorganization will involve utilizing blockchain technology in the procurement process.
“All distributions would also be secured and traced using blockchain technology to dramatically enhance security, transparency, and traceability,” the memo states. “This method would promote innovation and efficiency among implementing partners and enable more adaptable and responsive programming focused on tangible outcomes rather than merely fulfilling activities and inputs.”
The memo does not clarify what this specifically entails—whether it will mean using cash transfers in any cryptocurrency or stablecoin, for instance, or simply employing a blockchain ledger to monitor aid distribution.
This memo arrives as USAID staff members seek clarity about their future roles. The agency was among the initial targets of the so-called Department of Government Efficiency (DOGE), which has been effectively led by centibillionaire Elon Musk. Shortly after President Trump assumed office, the State Department placed the entire agency’s personnel on administrative leave, significantly reduced its workforce, and suspended some payments to global partner organizations engaged in lifesaving initiatives. Although a federal judge has issued a preliminary injunction against the agency’s dismantlement, this memo suggests that the administration intends to persist in its mission of significantly reducing USAID and completely integrating it into the State Department.
The plans involving blockchain technology have also surprised agency staffers.
To date, few blockchain-centered endeavors have reached large-scale application within the humanitarian sector. Linda Raftree, a consultant assisting humanitarian organizations in adopting new technology, explains that there is a rational basis for this—integrating blockchain technology is frequently unnecessary.
“It appears to be a superficial technological fix for a problem that doesn’t actually exist,” she remarks. “We’ve never managed to uncover an instance where blockchain use was essential compared to existing tools.”
Giulio Coppi, a senior humanitarian officer with the nonprofit Access Now and researcher into blockchain usage in humanitarian efforts, states that while blockchain technologies can sometimes be effective, they do not offer clear advantages over alternative tools that organizations might employ, such as established payment systems or different database solutions. “There’s no verified benefit indicating it is cheaper or superior,” he notes. “The manner in which it has been presented resembles a tech solutionist perspective that has repeatedly shown minimal real-world impact.”
Nevertheless, some successful examples of blockchain application in the humanitarian sector have occurred. In 2022, the United Nations High Commissioner for Refugees (UNHCR) conducted a small pilot project providing cash assistance to Ukrainians displaced by the Russia-Ukraine war, utilizing a stablecoin. Other pilots have been implemented in Kenya through the Kenya Red Cross Society. The International Committee of the Red Cross, collaborating with the Kenya team, also played a role in developing the Humanitarian Token Solution (HTS).
