The U.S. Treasury implements a blockchain for transparent distribution of grants

At the end of September, 2020 the Bureau of fiscal service, division of the U.S. Treasury, announced the project on use of a blockchain for transparent distribution of grants. This continuation of the existing project which was begun in 2017.

One of problems of traceability of grants is that many of them pass through the third parties. Thus, a key project objective - to provide transparency of payments of sub-receivers. At the same time use of a blockchain should simplify to sub-receivers receiving payment or provide all necessary data on delays.

It should be noted that in 2018 grantees returned to the state $20 billion overpayments. Grant managers spend 40% of time to provide observance of all requirements, and these tasks can be simplified considerably at application of a blockchain.

The U.S. Treasury implements a blockchain for transparent distribution of grants

Carrying out tokenization of data on grants and integrating them with information on payments in a blockchain, we will be able to provide transparency of payments which could not be reached before without burdensome reporting, - the manager of the program for supervision of financial services Craig Fischer explained.

The project is implemented by Management of financial innovations and conversions (FIT) with assistance of Deloitte. Earlier in 2020 the National scientific fund (NSF) selected $8.3 billion for financing of researches in colleges and the universities of the USA. Having seized this opportunity the State San Diego State University and Duke University together with National scientific fund checked the concept of the project, using the exclusive corporate version of Ethereum. At the last six-months stage of an experiment functional and legal effects of use of a blockchain for tracing of payments of grants will be considered.^[1]

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