The Algorand Foundation has publicly urged Elon Musk’s Department of Government Efficiency (DOGE) to adopt its blockchain for government operations.
In a Feb. 4 post on X, the foundation highlighted how Algorand’s technology could enhance transparency, particularly in tracking federal expenditures.
According to Algorand, its blockchain is built with quantum-resistant security, making it ideal for safeguarding sensitive government data and preventing tampering.
Algorand is a proof-of-stake blockchain that was launched in 2019. While its ALGO native token ranks among the top 50 cryptocurrencies by market capitalization, adoption of the network has been slow.
Moreover, the project also faces legal scrutiny, with the US Securities and Exchange Commission (SEC) arguing that ALGO qualifies as a security and should comply with federal regulations.
Blockchain embrace
The foundation’s statement follows several reports of DOGE’s growing interest in using blockchain solutions for public administration.
Last month, reports emerged that the organization considered blockchain technology a tool to reduce governance costs. Potential applications of the solution would include financial oversight, payment processing, data security, and infrastructure management.
DOGE officials have reportedly been discussing with multiple blockchain developers to determine the best fit for the initiative.
This has sparked interest from various blockchain projects, including Cardano. Its founder, Charles Hoskinson, recently suggested a multi-chain approach involving Cardano, Bitcoin, and Midnight, offering to contribute without charge.
DOGE faces challenges
While DOGE explores blockchain integration, its operations have come under legal scrutiny.
On Feb. 3, the American Federation of Labor and Congress of Industrial Organizations filed a lawsuit against the US Treasury. The union alleges that the agency unlawfully granted DOGE access to personal and financial records, violating federal protections.
Additionally, lawmakers have raised concerns about DOGE’s authority. Senator Chuck Schumer criticized the initiative, warning against the unchecked influence of a privately managed group within public institutions.
He argued that while technological advancements are welcome, government oversight should not be modeled after a corporate startup.
However, Musk responded that:
“[DOGE] is our ONE CHANCE to return POWER to the PEOPLE from an unelected BUREAUcracy back to DEMOcracy!!”
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