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Musk’s blockchain proposal sparks legal, economic, and market instability concerns. Crypto markets tumble as Musk’s Treasury access fuels investor uncertainty. Experts warn blockchain integration may weaken the US dollar’s global dominance. Elon Musk set off controversy with a bold proposal to shift the US Treasury onto blockchain technology. His plan comes after a dramatic weekend during which he reportedly accessed sensitive Treasury data, including Social Security and Medicare records.  Although he only has “read-only” access, concerns have surfaced over the security of personal information. Musk argues that Treasury officials routinely approve questionable payments, and that blockchain could offer a clear record of accountability.  However, his proposal has sparked strong opposition, legal challenges, and market instability. The crypto sector reacted poorly, with major digital assets suffering sharp declines. While Musk claims that blockchain integration would cut costs, critics warn of economic risks and a weakened US dollar. Elon Musk has “confirmed he wants to put the U.S. Treasury on a blockchain,” per Forbes. — unusual_whales (@unusual_whales) February 5, 2025 Musk’s Claims and the Blockchain Vision Musk has alleged widespread financial mismanagement within the Treasury, stating that fraudulent payments happen daily. He hasn’t provided proof yet but insists that blockchain would guarantee transparency and ensure adherence to Congressional funding laws.  He envisions using blockchain to monitor federal expenditures, execute payments, and manage agency resources. However, these tasks are already handled efficiently by current financial systems. Moreover, Musk has yet to outline exactly how blockchain would improve operations or curb inefficiencies. Related: Is Elon Musk Bringing Back Vine? Crypto Token VINE Sees Wild Ride His vague promises of cost savings and better oversight have drawn skepticism from experts. The federal government processes vast sums in financial transactions, and the current limits of blockchain technology might slow operations. Additionally, concerns over security, inflation, and…

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Filed under: News - @ February 6, 2025 12:24 pm