According to a memo circulating among personnel at the State Department, reviewed by WIRED, the Trump administration intends to rebrand the United States Agency for International Development (USAID) as the US International Humanitarian Assistance (IHA), integrating it directly under the Secretary of State. As initially reported by Politico, the document outlines plans for a reorganization that includes leveraging blockchain technology within its procurement process.
The memo specifies that all distributions would be secured and traced via blockchain technology to enhance security, transparency, and traceability. This approach aims to promote innovation and efficiency among implementing partners and enable more flexible and responsive programming focused on tangible impact rather than on merely completing activities and inputs.
However, the document does not clarify what this entails—whether it involves conducting cash transfers using cryptocurrency or stablecoins or simply tracking aid disbursement with a blockchain ledger.
Staff at USAID are attempting to comprehend the implications of these changes. The agency has been targeted by the Department of Government Efficiency (DOGE), effectively led by centibillionaire Elon Musk. Following President Trump’s inauguration, the State Department placed the entire agency’s staff on administrative leave, significantly reduced its workforce, and halted a portion of payments to global partner organizations, including those involved in lifesaving work. A federal judge has issued a preliminary injunction against dismantling the agency, but the memo indicates that the administration plans to continue reducing USAID and fully integrating it into the State Department.
The blockchain plans have surprised staffers. Few blockchain-based projects have achieved large-scale use in the humanitarian sector. Linda Raftree, a consultant who assists humanitarian organizations in adopting new technology, asserts that the incorporation of blockchain is often unnecessary, describing it as a “fake technological solution for a problem that doesn’t exist.” She notes the lack of instances where blockchain proved more effective than existing tools.
Giulio Coppi, a senior humanitarian officer at the nonprofit Access Now, has researched blockchain in humanitarian work and states that while blockchain technologies can be effective, they offer no apparent advantages over other available tools, such as existing payment systems or database tools. He suggests that the presentation of blockchain technology fits a tech solutionist approach with no substantial impact on reality.
Nevertheless, there have been successful cases of blockchain use in the humanitarian field. In 2022, the United Nations High Commissioner for Refugees (UNHCR) conducted a small pilot project offering cash assistance to Ukrainians displaced by the Russia-Ukraine war using a stablecoin. Other pilot projects have been tested in Kenya by the Kenya Red Cross Society, with the International Committee of the Red Cross also contributing to the development of the Humanitarian Token Solution (HTS).
