Implement federal spending blockchain

Economy
2

Executive Branch Policy for Implementing Classified and Unclassified Blockchain Operations for Financial Tracking at the Department of Treasury

Policy Title: Transparency and Accountability through Blockchain Technology

Policy Objective:
To establish a robust, secure, and transparent system for tracking all government expenditures and income using blockchain technology at the Department of Treasury, thereby ensuring compliance with legislative mandates for cost accountability, enhancing public trust, and preventing financial mismanagement.

Policy Implementation:

1. Establishment of Dual Blockchain Networks:

  • Unclassified Blockchain:

    • Purpose: Public ledger for all general government financial transactions accessible to taxpayers for transparency.
    • Features:
      • Immutable record of income, expenditures, and budgetary allocations at the department level.
      • Real-time updates with privacy features to protect sensitive data (e.g., masking personal information).
      • Interface for public access with educational tools on how to interpret data.

  • Classified Blockchain:

    • Purpose: Secure, internal ledger for sensitive financial operations, including national security-related expenditures.
    • Features:
      • High-level encryption and access controlled by stringent security protocols.
      • Integration with existing secure government networks to ensure data integrity and confidentiality.
      • Audit trails for internal reviews and congressional oversight.

2. Legal Framework:

  • Amend existing laws (like the Chief Financial Officers Act of 1990 and the Government Performance and Results Act of 1993) to explicitly mandate the use of blockchain technology for financial tracking.
  • Establish new regulations that define the scope, security standards, and operational guidelines for both blockchain networks.

3. Technology and Infrastructure:

  • Partnerships: Collaborate with leading blockchain technology firms and cybersecurity experts to design and implement the system.

  • Development:

    • Develop custom blockchain protocols tailored for government use, focusing on scalability, security, and integration with current financial systems.
    • Implement smart contracts for automatic compliance checks and reporting.

  • Maintenance:

    • Regular audits of the blockchain by independent third parties to ensure accuracy and security.
    • Continuous updates to software and security measures to address new threats.

4. Training and Compliance:

  • Training: Mandatory training for all Treasury employees on how to interact with the blockchain systems, understand blockchain principles, and maintain data privacy and security.
  • Compliance:
    • Establish a compliance office within the Treasury to oversee adherence to blockchain policies.
    • Regular compliance checks to ensure all departments are updating and using the system correctly.

5. Transparency and Public Engagement:

  • Public Reporting: Monthly or quarterly reports using data from the unclassified blockchain, presented in an understandable format to the public.
  • Feedback Loop: Establish channels for public feedback on the transparency of government spending, which could influence policy adjustments.

6. Accountability Measures:

  • Auditability: Ensure that both blockchain networks are fully auditable, allowing for internal and external audits by GAO or Congress.
  • Penalties: Implement strict penalties for departments or individuals that circumvent or manipulate the blockchain data.

7. Phased Implementation:

  • Pilot Phase: Start with a few departments to test the system in a controlled environment.
  • Full Rollout: Gradually expand to all departments, learning from each phase to refine the process.

8. Monitoring and Evaluation:

  • Set up a task force to monitor the effectiveness of the blockchain in reducing financial discrepancies and increasing accountability. This task force will report directly to the President and Congress.

Conclusion:
This policy aims to transform government financial operations into a model of transparency and accountability, directly addressing the historical resistance to cost accountability within the federal bureaucracy. By leveraging blockchain technology, the Treasury can not only comply with legislative mandates but also set a global standard for governmental financial transparency.