The U.S. Department of Housing and Urban Development (HUD) is considering a trial for using cryptocurrency, primarily through blockchain technology to monitor grants. This initiative raises concerns regarding the unpredictability and risks associated with cryptocurrencies, especially paying federal grant recipients in an uninsured digital asset. Some staff members express skepticism, referencing the financial crises of the past as potential warnings. The push for these discussions appears to be led by Irving Dennis, a new official with ties to the consulting firm EY, which is also involved in the proposal.
"I don't see any way this will help anything. I see a lot of ways this could hurt," said the official, who spoke on condition of anonymity for fear of retribution.
The discussions have sparked concern among some at the department, especially about the prospect of paying recipients of major federal grants in cryptocurrency, an uninsured digital asset associated with financial speculation.
The focus of the discussions so far has been experimenting with using the underlying technology that makes crypto possible - the blockchain - to monitor HUD grants.
Blockchain advocates argue that the technology is valuable on its own for such purposes, but experts believe its primary use is for crypto transactions.
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