Mike Belshe, CEO of Bitgo, one of the largest cryptocurrency custody providers, has proposed using a public blockchain to combat fraud at the state and federal level. Speaking on social media, he claimed that citizen oversight alone would be sufficient to control the flow of these funds.
Public Blockchain: The Ultimate Citizen Oversight Tool
Belshe stated: "There is a solution to all this state and federal fraud that does not require abolishing money: put it on a public blockchain." He envisions disbursing public funds to non-governmental organizations (NGOs) via a blockchain like Ethereum, then publishing all transactions and receiving addresses for public scrutiny. "Citizens will take care of the rest," he emphasized.
The proposal comes as the Trump administration intensifies its fight against fraud, with Trump appointing Vice President J.D. Vance as 'fraud czar' targeting Democrat-controlled states including California, Illinois, Minnesota, Maine, and New York. In California, eight people were recently arrested for alleged involvement in a healthcare fraud scheme exceeding $50 million. The Treasury Department has noted that "complex fraud networks in Minnesota have stolen billions of dollars from state programs for personal enrichment at home and abroad."
Russia Already Testing Digital Ruble for Federal Payments
Interestingly, Russia has already tested its central bank digital currency (CBDC), the digital ruble, for the same purpose. Limited budget trials began in 2025, and as of January 2026, the digital ruble can be used for all government payments. Russian authorities describe this use case as one "where the capabilities of the digital ruble can be fully utilized."
While Belshe advocates for a public blockchain like Ethereum rather than a government-controlled CBDC, the Russian model demonstrates the feasibility of blockchain-based government disbursements. Belshe argues that public blockchains offer greater transparency because they are immutable and decentralized, preventing any government from retroactively altering records.
Industry Reaction and Challenges
The crypto community has welcomed Belshe's proposal. Analysts suggest that if the U.S. government adopts a public blockchain, it could significantly accelerate mainstream blockchain adoption. However, challenges remain, including privacy concerns, scalability issues, and political resistance from government entities reluctant to surrender control over fund flows.
Currently, there is no official response from the White House or Treasury. But the debate over transparency and corruption is likely just beginning. Belshe's proposal provides a technical solution to the long-standing problem of government fraud, while Russia's digital ruble offers a real-world precedent.