The U.S. Department of Treasury is trialling a blockchain-based letter of credit system to track federal grants efficiently. Details about the project were shared by Craig Fischer, innovation program manager at the Treasury during a recent conference on financial modernization, according to
GCN (Government Computer News).
The Treasury Department is working with the National Science Foundation (NSF) to tokenize the details and payments in federal letters of credit. The NSF has a budget of $8.3 billion to fund research in U.S. colleges and universities for FY 2020. According to an
NSF presentation, the project was planned back in 2018.
Currently, the grants process between NSF and universities is complicated. A university receives the letter of credit which it forwards to the respective department or team conducting a study. The NSF has to rely on reporting from the grant recipients and sub-recipients to monitor the use of money.
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