Copy link
Increase text size
Decrease text size
Link copied

U.S. Treasury Department finishing up blockchain testing for tracking federal grant payments

Tue, 14 Jan 2020, 10:08 am UTC

The U.S. Treasury Department is about to complete testing a blockchain-based payment capability for federal grants, FCW reported.

Craig Fisher, Supervisory Program Manager in the Office of Financial Innovation and Transformation (FIT), shared that they are finishing up a proof of concept program for a blockchain-based letter of credit for the recipients of federal grants. The new program will tokenize the electronic federal letters of credit that will be sent out to the grant recipients to track payments. This guarantees a safe and secure transaction compared to actual cash exchange.

Fisher explained that the token is a digital representation of the payment and it includes the recipient’s identification, grant amount and key dates like the time it was awarded. The blockchain-based letter of credit provides a peer-to-peer transfer to prime and sub-grantees. Grant recipients need an electronic wallet associated with a bank account to receive their tokenized letter.

The department has been looking into blockchain potential for the past couple of years. In 2019, Fischer also discussed blockchain at a conference hosted by Booz Allen Hamilton and the Data Foundation on the report “Bringing Blockchain into Government.” At the time, he revealed that they were still far from completing their blockchain tests.

“If you look at this from a government-wide perspective, data standardization is critical,” Fischer said. “So what we learned is ‘can it improve this?' Yes, but not right now because there would need to be a massive standardization effort that would have to take place across the government for blockchain to be an effective tool for managing and tracking software licenses.”

Fischer added that if blockchain doesn’t improve life for the user it will have a slower uptick, otherwise, it will have a faster uptick. Apparently, the case is true for the latter.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Bitcoin (BTC) $8,865.01 (-0.43%)
  • Ethereum (ETH) $168.78 (-0.76%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $362.66 (+5.37%)
  • Bitcoin SV (BSV) $262.34 (-15.77%)
  • Bitcoin (BTC) $8,865.01 (-0.43%)
Jan 17, 2020 (Friday)
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
Crypto dealer SFOX announces new service for investors and wealth managers
Binance in talks with TaoTao and Z Corporation for strategic partnerships in Japan
Crypto Technicals: NEO/USD set to scale new highs, 200-DMA breakout confirms bullish trend
Crypto exchange Gemini launches own insurance company "Nakamoto"
eToro, Radar and OKCoin join Coinbase-led Crypto Rating Council
Huobi joins Blockchain Turkey Platform (BCTR)
U.S. authorities urged to investigate crypto use in funding domestic terrorism and extremism
Calibra, Anchorage, Bison Trails executives elected to Libra’s new technical steering committee
Crypto Technicals: LTC/USD bounces off 5-DMA support, eyes next major hurdle at 200-DMA (65.43)
U.S. lawmakers seek tax exemption for crypto transactions under $200
Former CFTC Chair launches Digital Dollar Project in partnership with Accenture
Crypto Technicals: ETH/USD resumes upside after brief pause, eyes 23.6% Fib at 174.83
Uzbekistan to launch national mining pool and licensed cryptocurrency exchange
Crypto Technicals: BTC/USD extends sideways below 200-DMA, bias bullish
Garanti BBVA conducts real-time blockchain transfers using Takasbank's BiGA Platform
Jan 16, 2020 (Thursday)
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
Litecoin Foundation, BlockFi partner to bring more liquidity to users
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.