The US Treasury is nearing the completion of a proof of concept program that would track the letter of credit for recipients of financial grants.
Program manager Craig Fischer says the US Treasury Department tested blockchain-based platform to monitor grant payouts.
According to THE DAILY HODL, The blockchain-based program tokenizes letters of credit which are transferred to grantees through peer-to-peer transactions, reports FCW. The process enables the Treasury Department to monitor the release of grant payouts from the government’s purse to qualified recipients. The tokens also store pertinent data including grant amount and grantee information. To securely receive the grant money, recipients would have an electronic wallet that’s linked to a bank account.
The new US Treasury platform is a private system, as opposed to a decentralized open network that can be viewed by the public, and Fischer says,
“This isn’t the Bitcoin network where everything is visible to everyone.”
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