The U.S. Postal Service Office of Inspector General (OIG) has released a comprehensive report titled “Blockchain Technology: Possibilities for the U.S. Postal Service,” outlining how blockchain could transform the century-old institution. Compiled with the help of consulting firm Swiss Economics, the report urges USPS to actively explore blockchain for financial services, identity verification, supply chain management, and even device management through an Internet of Postal Things.
The Postcoin Vision: Global Postal Payments
The most immediate application proposed is the creation of a Postcoin platform — a blockchain-based payment and money transfer system. The report suggests two deployment methods: building a new blockchain from scratch or integrating with an existing one like Bitcoin or Ethereum. Postcoin is envisioned as a global postal money transfer platform, leveraging the unmatched physical presence of over 600,000 post offices worldwide, especially in underserved communities. This initiative aligns with a 2014 OIG report on non-bank financial services, which advocated for postal offerings such as prepaid debit cards, bill pay, mobile payments, and small loans.
The report dives into technical details, comparing consensus mechanisms like proof-of-work and proof-of-stake, and mentions several altcoins including Litecoin, Peercoin, Omni Layer, Ripple, Ethereum, and NEM.
Identity Services and the Internet of Postal Things
Beyond finance, blockchain could enable digital identity services, allowing users to notarize documents, log in securely to websites, or execute smart contracts — an expansion of USPS’s current passport processing. The report also envisions a self-managing “Internet of Postal Things,” where devices like delivery trucks autonomously issue smart contracts for maintenance. For instance, a mail truck could sense worn brake pads and order replacements via blockchain.
Supply Chain and Package Verification
Blockchain can provide a unique, verifiable identifier for each package, speeding up customs clearance and improving interoperability with other postal and private carriers. This reduces fraud and enhances tracking transparency.
Randy S. Miskanic, USPS Chief Information Security Officer and Vice President of Digital Solutions, stated: “The Postal Service will continue to examine Blockchain technology in our innovation activities for identity management, supply chain management, and secure electronic communications.” However, he cautioned about technology barriers, security concerns, and regulatory uncertainty. The report balances these risks against blockchain’s benefits: lower costs, higher speed, improved privacy, and global reach.
While Postcoin remains a proposal, the report signals serious government interest in blockchain’s potential to revitalize a public service facing declining mail volumes. Whether USPS will actually deploy Postcoin or other blockchain solutions remains to be seen, but the exploration itself marks a significant step for a major federal agency.