The US Department of Housing and Urban Development (HUD) manages billions of dollars in aid and insures over a trillion dollars in mortgages. Now, it is considering using blockchain to track grant recipients’ spending.
The agency may also explore stablecoins as a financial tool within its system. However, this proposal has sparked intense debate, especially as HUD faces challenges in financial management efficiency.
HUD’s Crypto Consideration Raises Concerns of a 2008-2009 Crisis Repeat
According to ProPublica, HUD is looking to leverage blockchain—the core technology behind cryptocurrencies—to improve oversight of grant funds.
A HUD official stated that the idea of using blockchain and stablecoins is being driven by Irving Dennis, the agency’s Deputy Chief Financial Officer. Dennis, who previously worked as a partner at the global consulting firm EY, believes the technology could enhance transparency and efficiency in grant monitoring. This area has historically been complex and prone to waste.
Additionally, ProPublica reported that HUD officials held at least two meetings last month to discuss the blockchain proposal. Staff from the Office of the Chief Financial Officer (CFO) and the Office of Community Planning and Development (CPD) attended these meetings.
During the discussions, CPD explored a “proof of concept” pilot project. In this project, blockchain would track funding for a CPD grant recipient.
“We might learn something from this, especially if the federal government is moving toward stablecoin adoption in the future,” one official who attended the meeting said.
However, ProPublica quoted a HUD employee expressing concerns: “People are trying to introduce another unregulated security into the housing market as if 2008 and 2009 never happened.” Another official compared cryptocurrency to “Monopoly money,” implying it could become worthless.
D.O.G.E. Highlights Internal Financial Issues at HUD
Recently, the Department of Government Efficiency (D.O.G.E.) shed light on internal financial problems at HUD, raising doubts about the agency’s ability to manage new technology. D.O.G.E. revealed that HUD had just completed a software license audit, uncovering severe waste.
“HUD completed the same audit. Initial findings on paid software licenses: 35,855 ServiceNow licenses across three products; only using 84. 11,020 Acrobat licenses with zero users. 1,776 Cognos licenses; only using 325. 800 WestLaw Classic licenses; only using 216. 10,000 Java licenses; only using 400. All are being fixed,” D.O.G.E. stated.
HUD’s official press account responded to D.O.G.E.’s findings, saying the agency is reviewing every dollar spent and working closely with D.O.G.E. to address taxpayer money waste.
As of this writing, HUD’s official X account has not made any announcements regarding blockchain trial discussions.
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