The U.S. government isn’t launching its own cryptocurrency anytime soon, but it’s already testing and applying blockchain tools across public finance, supply chains, and emergency response. From the state of Wyoming’s own stable token to Navy pilots for parts tracking, crypto isn’t a theory anymore. Its infrastructure is in progress.
Even with political resistance to a central bank digital currency (CBDC), agencies are actively exploring how token-based systems can improve transparency, speed, and verification. These programs aren't just technical experiments. They shape how money moves, how contracts get fulfilled, and how data is trusted.
This article covers what’s live, what’s in pilot mode, and where things could be heading next.
CBDCs on Hold, but Stablecoins Are Still in Play
In January 2025, former President Donald Trump issued Executive Order 14178, which bans the creation or support of a U.S. CBDC. The order revokes previous directives that encouraged development and research. It also launches a working group to suggest a regulatory path forward for other digital assets. While this freezes federal momentum around a retail digital dollar, it doesn't stop states or agencies from using blockchain in other ways.
Meanwhile, the GENIUS Act, short for Guiding and Establishing National Innovation for U.S. Stablecoins, is moving through Congress. This bipartisan bill would regulate how stablecoins are issued, backed, and audited. If passed, it could make stablecoins a legitimate tool in future government transactions, including potential public-private contracts that use tokenized payment systems.
How Federal Agencies Are Testing Blockchain
Blockchain is already being tested within the federal government. Here are some verified pilots and internal programs.
GSA (General Services Administration) ran a blockchain trial in 2017 to automate contract reviews. While it wasn’t adopted long-term, it showed how distributed records could reduce manual compliance steps.
Treasury tested a grant distribution system using blockchain to track drawdowns. The system allowed automatic reconciliation and audit trails. It never launched publicly but proved useful internally.
CFTC (Commodity Futures Trading Commission) is hosting a pilot program on tokenized collateral and stablecoin-based financial transactions. The agency plans to evaluate how these tools function in regulated markets.
SBA (Small Business Administration) evaluated blockchain as a tool to monitor fraud and performance metrics in loan programs. GAO reports confirm this review, though no public-facing product has launched yet.
Crypto and Blockchain Use in Defense
The Department of Defense and Department of Homeland Security are actively exploring blockchain for parts tracking, supply chain authentication, and digital documentation.
The U.S. Navy and DLA (Defense Logistics Agency) are working with SIMBA Chain to track high-value parts through a blockchain ledger. The pilot allows for better traceability and reduces manual data entry in defense supply chains.
Customs and Border Protection (CBP) previously ran a blockchain trial to verify intellectual property data on imports. The technology proved capable of spotting counterfeit goods and could support trade-related contract enforcement.
DHS’s Silicon Valley Innovation Program is funding startups that use blockchain to manage software bill of materials (SBOMs), supplier validation, and identity credentials for secure federal systems.
State Governments Are Moving Faster
Some state governments are pushing crypto into real public programs faster than the federal level.
Wyoming created the Wyoming Stable Token Commission, which launched a state-backed stable token on test networks in 2024. Full issuance is expected in 2025, and the token is overcollateralized by U.S. dollars.
Colorado accepts cryptocurrency payments for state taxes using PayPal’s crypto tools. The crypto is converted to dollars before being deposited, but it still shows how public systems are adapting to digital assets.
Ohio became the first state to accept business tax payments in Bitcoin in 2018. The program was shut down in 2019 due to compliance concerns, but it helped set a legal precedent that others have built on.
Crypto Use in Disaster Relief and International Aid
Blockchain and stablecoins are gaining attention because of their potential to deliver aid quickly and securely.
FEMA’s National Advisory Council recommended a blockchain-based land and property registry to speed insurance payouts and assistance claims after disasters. The idea is still under study, but it has support in emergency management circles.
Ripple and Mercy Corps launched a pilot in Kenya using stablecoins to deliver drought relief. Funds are automatically distributed when drought data hits a trigger point.
UNHCR and Circle deployed a digital dollar (USDC) on Stellar to send money to Ukrainian families displaced by war. These funds could be cashed out at physical locations without needing a traditional bank account.
Why This Matters for the Public Sector
The government isn’t jumping into crypto as a replacement for traditional systems. It treats blockchain as a tool that solves specific problems in traceability, settlement speed, and recordkeeping. The real transformation is behind the scenes.
Contractors, researchers, and civic tech partners need to watch how these tools evolve. In time, pilot programs may require vendors to support digital ledgers, smart contracts, or on-chain audit trails. Even if crypto isn’t used for payment, it may shape the compliance systems that surround those payments.
What’s Next?
Crypto and blockchain pilots are happening whether or not the federal government launches its own coin. These technologies are showing up in logistics contracts, grant disbursements, and software tracking tools.
If your work touches disaster aid, defense supply chains, or digital compliance systems, this isn’t a trend to ignore. USFCR can help you identify whether you’re positioned for future blockchain-ready solicitations and how to describe your capabilities to contracting officers.
Reach out to learn how you can prepare for pilots that may become permanent programs.
FAQ
Is the government currently paying anyone in crypto?
No. All payments from federal or state agencies are converted to U.S. dollars before disbursement. Crypto is only used as a medium in a few pilot projects.
What is the GENIUS Act?
It’s a proposed federal law to regulate stablecoins. It includes rules for audits, reserve backing, and licensing issuers that want to operate in the U.S.
Did Trump ban a U.S. digital dollar?
Yes. Executive Order 14178, issued in January 2025, stops any federal agency from developing or promoting a central bank digital currency.
Are any government contracts using blockchain?
Some pilot programs, especially in defense and logistics, are testing blockchain systems. These are not widespread yet, but could expand in the next 12 to 18 months.
Can contractors accept crypto from agencies?
No. All crypto-based experiments are internal. Contractors are still paid in dollars through standard Treasury channels.
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