Blockchain Gets A Government Job

People across the globe have always sought more clarity from their governments about their activities. They question their numbers, scrutinise spending, and also often suspect that allocated funds usually do not really reach where they should.

It’s a problem that governments everywhere face: how do you make information trustworthy without drowning people in a pool of data?

Turns out, some governments are taking steps to ensure the economic data they issue is always taken at face value.

Just last week, two very different countries — the United States and the Philippines — took to blockchain to address this trust deficit.

According to Bloomberg, the US is posting its GDP numbers on public blockchains, while lawmakers in the Philippines are exploring putting the entire national budget there.

The adoption of blockchain to carry important economic data is tantamount to a seal of approval on a technology that is now being used for purposes far beyond its origins in cryptoverse.

US GDP on Blockchain

In Washington, the commerce department is posting the official hash — a unique string of alphanumeric code to prove the authenticity of data — of its quarterly GDP numbers on nine public blockchains, including Bitcoin, Ethereum, Solana, and Polygon.

The new platform isn’t replacing the usual reports; this is just another way to share numbers that nobody can manipulate.

The move by the US government matters because GDP numbers can move markets, and everyone including investors, traders and policymakers pays attention. Putting the numbers on a blockchain means anyone can verify the numbers and ascertain their credibility.

Budget on Blockchain

Meanwhile, in Manila, senator Bam Aquino is planning something even bolder: putting the entire national budget on blockchain. If the proposal sees the light of day, every peso spent could, in theory, be logged so that anyone can see it.

At a recent tech conference, Aquino said, “No one is crazy enough to put their transactions on blockchain, where every single step of the way will be logged and transparent to every single citizen. But we want to start.”

This isn’t coming out of nowhere. In July this year, the country’s department of budget and management began using a Polygon-based system to validate government documents and stop fakes, especially when AI-generated forgeries have become more sophisticated.

Together, these moves show the Philippines experimenting with blockchain for more accountability even if it’s unclear whether the budget plan will see the light of day.

But you have to hand it to their government that the idea is indeed a bold one.

Lessons for India

India already has some strong day-to-day digital tools for its citizens — Aadhaar, UPI, DigiLocker. But the US and Philippines examples show there’s room to take it further, especially when it comes to making the system more accountable and trustworthy.

Although there have not been big corruption cases in India in the past decade or so, financial malpractices are still rampant in the country.

While penal provisions are a major deterrent, various government departments surely need to improve their ratings on the transparency scale. One way to do that is by bringing their day-to-day activities on the blockchain so that every transaction and decision could be publicly verifiable.

For instance, too often we’ve seen roads that exist only on paper, or projects where money is shown as spent but little or no work is visible on the ground. Blockchain can solve these problems efficiently. Let’s see how.

On blockchain, there would be a clear trail of important details such as tender floating, bidding details, work orders, allocated money, completion deadlines, materials used, and spending records.

This level of transparency would make manipulations nearly impossible and give people verifiable insights into government operations. For government officials, it could mean flawless oversight, fewer errors and no need for endless paperwork.

The same could work for crucial numbers like GDP, inflation, and employment. If this data were posted on a blockchain, investors and economists can verify them effortlessly.

Final Words

Technology like blockchain can solve some problems, but not all problems, and it certainly won’t replace good governance. But it can give people a credible tool to check what their governments are doing.

The US and the Philippines have indeed moved the technology from pilot projects into serious territory, and also showed the world that its potential is huge.

If done properly, the technology could change how citizens see their governments. Moreover, it gives people a real seat at the table.

Now, the country needs to decide whether it is ready for a system that is so frighteningly transparent. If the answer is yes, the tech is already here. Just connect the dots.

This series is brought to you in partnership with Algorand.