Mike Belshe, chief executive of BitGo, has suggested that public blockchain technology could serve as a direct solution to widespread government fraud.
His proposal centres on increasing transparency by placing government financial transactions onto an open and traceable digital ledger.
Belshe shared the idea through social media, arguing that public visibility would discourage misuse of funds.
He pointed to the scale of fraud affecting both state and federal programmes, which may amount to hundreds of billions of dollars each year.
Estimates referenced in his remarks suggest that losses linked to fraud could reach as high as $521 billion annually.
The proposal arrives as policymakers continue to search for more effective ways to monitor public spending.
Belshe highlighted that traditional oversight systems have struggled to prevent large-scale financial abuse.
He argued that blockchain offers a simpler approach by allowing anyone to review transactions in real time.
“There is a solution to all this state and federal fraud which doesn’t require repealing the money: put it on a public blockchain,”
Mike Belshe said.
Under his concept, government payments to organisations such as non-governmental groups would be recorded on a public blockchain network.
These transactions would include visible wallet addresses, making it easier to track where funds are directed.
Belshe believes that ordinary citizens could then act as an additional layer of oversight.
He emphasised that public scrutiny would naturally expose irregularities without the need for complex enforcement systems.
The proposal comes amid heightened political focus on fraud prevention across several US states.
Authorities have recently intensified investigations into alleged financial misconduct in multiple regions.
In California, several individuals have been arrested over a healthcare fraud case involving tens of millions of dollars.
Officials have also raised concerns about organised fraud schemes operating across state programmes in other areas.
Government agencies continue to report significant losses linked to coordinated fraud networks.
Meanwhile, other countries have begun testing similar ideas through digital currency systems.
Russia has trialled its central bank digital currency, the digital rouble, to improve transparency in public spending.
The system has been used in controlled budget experiments since 2025 and expanded for broader government payments in 2026.
Policymakers have identified digital currencies as a potential tool for improving accountability and tracking state funds.
Belshe’s proposal adds to a growing debate over whether blockchain technology could reshape how governments manage and monitor public finances.