The US Treasury Department, which is in charge of government revenue, has been reported to experiment with blockchain tech in order to develop a system that tracks federal grants.
The proof-of-concept (PoC) program that’s intended for a blockchain-based grant recipients’ letter of credit is about to be completed, says Craig Fischer, the manager of the innovation program at the Treasury. As reported by Federal Computer Week (FCW), Fischer talked about the program on Friday, at a conference on federal financial systems modernization.
What’s Does the Program Do?
During trials, the program was used to tokenize credit letters so that it follows the trail of grant money from federal reserves to their recipients, says the FCW report. Through tokenization, the grant incipient and amount are being identified, also other important data like the date when the grant was awarded, Fischer mentioned. He continued by adding that grant recipients need to hold an electronic wallet linked to a bank account if they want to be given a tokenized letter of credit. When it comes to access, Fischer mentioned:
“This isn't the Bitcoin network, where everything is visible.”
The US Treasury started on the Program in September 2019
Developed in collaboration with the National Science Foundation, the San Diego State University and the Duke University ever since September 2019, the trial program is expected to come to an end as soon as this month will be over. It isn't the 1st time when the Treasury Department is experimenting with blockchain tech in order to enhance its agency.
For example, back in 2018, it has developed a blockchain-based prototype project for managing physical assets like mobile phones and computers, and noted the technology has,
“great potential for streamlining burdensome reconciliation operations that are involved in many financial transactions.”