As of 10 April 2025, A leaked memo circulating at the U.S. State Department has ignited a debate in Washington: Could blockchain be the key to cutting waste and improving government efficiency? With trillions flowing through federal programs, transparency and cost savings have never been more critical.
But not all blockchains are created equal. The question now is: Which proven and scalable solution can best serve the government, taxpayers, and the global economy alike?
A Proven Blockchain for Public Sector Efficiency
Unlike other blockchains that simply offer speed and cost reductions, Stellar differentiates itself through practical implementation and tangible results. Already a global leader in cross-border payments, Stellar offers nearly free onchain transactions, strong asset controls, a number of well-regulated US dollar stablecoins that are globally accepted, an ecosystem of digital wallets with global off-ramping solutions and global integration with the traditional financial system. It is also where The Stellar Disbursement Platform—an open-source, free to use product, built by the Stellar Development Foundation—has already been deployed in real-world scenarios, showcasing the ability to streamline large-scale payment distribution while ensuring transparency and accountability. Its ease of use should also be noted, especially by those who might be reticent in using new technologies such as blockchain.
The leaked memo discusses U.S. funding for humanitarian efforts to be issued on a blockchain in order to deliver funds efficiently to organizations across the globe. The Stellar Disbursement Platform can streamline this process, ensuring that payments are not only faster and more cost-effective but also fully traceable, giving stakeholders the level of accountability that they demand.
A Strong Track Record in Aid Disbursement
Stellar has already proven its capabilities in global aid distribution. The United Nations High Commissioner for Refugees (UNHCR) and other United Nations agencies, in collaboration with the United Nations International Computing Centre (UNICC), are leveraging Stellar for global payments to individuals. This blockchain-based disbursement solution ensures rapid, secure, and accountable cash transfers to aid recipients.
This is not theoretical. It’s happening right now, with UNHCR having successfully disbursed nearly $5 million to 2,500+ households in Ukraine, Argentina, and Bolivia on Stellar. If the goal is to demonstrate the platform's reliability and effectiveness, mission accomplished.
Disaster Preparedness and Real-Time Response
Stellar has also been utilized for disaster preparedness and response. Mercy Corps Ventures, Mercy Corps Nepal, and Rumsan are using the Stellar Disbursement Platform to support flood-prone communities in Nepal. By integrating real-world data such as weather forecasts into smart contracts, the pilot program enables strategic preparedness—from early warning messages to automated cash transfers. The use of a multi-signature trigger mechanism ensures that funds are distributed transparently and with accountability, a critical requirement for public sector adoption.
This innovation represents a shift from reactive disaster relief to a proactive approach, which has been shown to be more cost-effective and beneficial for communities. Research indicates that distributing aid immediately before a crisis can significantly reduce overall expenses while improving outcomes for those affected. For example, A 2018 study by USAID on drought response in East Africa suggests that acting early could save billions over time by reducing the need for costly emergency interventions.
By leveraging blockchain technology to automate and verify these preemptive disbursements, organizations can streamline operations, minimize bureaucratic inefficiencies, and ensure payments reach those who need it —before disaster strikes.
Cost Savings and Speed: A Financial Game Changer
Traditional financial rails are costly and inefficient, making blockchain an attractive alternative for government organizations seeking better fiscal management.
The UNHCR's financial efficiency strategy, the Financial Gateway, includes the use of the Stellar network and the Stellar Disbursement Platform. According to UNHCR Deputy High Commissioner Kelly Clements “The gateway seeks to leverage digital financial technologies to help us prepare, to deliver aid in a more agile and efficient way while promoting financial inclusion. It could lead to efficiency gains of up to $60 million a year. Already in Ukraine, we’ve saved $12 million using digital payment technology and reducing financial service fees."
This staggering cost reduction alone should capture the attention of policymakers. At a time when government spending efficiency is under scrutiny, Stellar offers a ready-to-deploy solution that delivers real savings with a speed component.
Regulatory Compliance and Government Use Cases
Beyond humanitarian aid, governments can leverage blockchain technology for a range of bulk payments programs, including tax refunds, social insurance, and public assistance payments. By using a blockchain like Stellar, these payments can be processed faster and at a lower cost than traditional bank transfers or prepaid card distributions.
For example, tax refunds and social security benefits could be delivered directly to the intended recipients via an app on their phone, eliminating inefficiencies and reducing the risk of errors or fraud. Unlike conventional methods that involve multiple intermediaries, blockchain-based disbursements ensure funds are transferred securely, transparently, and instantly.
As compliance remains a major factor in government adoption of blockchain technology, projects on Stellar have proven that regulatory compliance is possible, paving the way for broader institutional adoption in the public sector.
Why Government Leaders Should Act Now
State Department officials and policymakers should take note. Blockchain is not just a theoretical solution; it is already delivering real-world benefits at scale. The Stellar Disbursement Platform is a proven product with a track record of helping institutions manage payments efficiently, transparently, and at a fraction of traditional costs.
Moreover, Stellar’s architecture ensures that governments maintain control over how funds are distributed, while its transparency guarantees that all transactions can be audited in real time without publicly displaying sensitive personal information. This aligns perfectly with the needs of agencies looking to enhance accountability and reduce inefficiencies in public spending.
Conclusion
With its customizable deployment options, near instant bulk payments, and full auditability, Stellar presents the most viable blockchain solution for government applications. As leaders seek to modernize public financial systems, Stellar stands as the clear choice to bring blockchain’s promise of transparency, accountability and efficiency into reality for the benefit of the government and organizations and to deliver measurable results that empower public institutions to transform how taxpayer dollars are managed.
The time for exploration has passed. It’s time for action.