#RWA U.S. Housing Administration considers launching cryptocurrency experiment The Ministry of Housing and Urban Development, which oversees billions of dollars in aid and guarantees over more than one trillion dollars of mortgages, is considering asset tokenization and stablecoins. An official from the Ministry of Housing and Urban Development ridiculed it as a "monopoly currency." The U.S. Department of Housing and Urban Development is considering taking the first step in using cryptocurrencies, according to minutes and other materials reviewed by ProPublica and three informed officials. Two officials told ProPublica they believe the plan could be a trial of the entire federal government using cryptocurrency. These discussions have raised concerns among some in the sector, especially about the prospects for paying major federal grant recipients in cryptocurrencies. Cryptocurrencies are uninsured digital assets that are linked to financial speculation, drastic fluctuations in value and transnational crime. So far, the focus of the discussion is to try to monitor HUD grants using the underlying technology that makes encryption possible—blockchain—. Blockchain supporters believe that the technology itself has such value. But experts say the main purpose of blockchain is crypto transactions. “It’s just introducing another unregulated securities to the real estate market, as if it didn’t happen in 2008 and 2009,” a HUD staffer said of the subprime mortgage crisis. "I can't see how this will help. I think it will cause a lot of harm," the official said, who, like the others in this article, asked for anonymity for fear of retaliation. The discussion of HUD covers the potential uses of stablecoins, a cryptocurrency pegged to another asset that can avoid large fluctuations in value, although such fluctuations have also occurred in the past. An official from the Department of Housing and Urban Development told colleagues that the driver of blockchain philosophy was Irving Dennis. Dennis is the agency's new chief deputy chief financial officer and was a partner of global consulting giant Ernst & Young (formerly Ernst & Young). Ernst & Young itself is involved in the proposal: An executive of the company discussed the idea last month with officials from the Department of Housing and Urban Development. The crypto industry has found allies in President Donald Trump, and the Trump administration has appointed industry promoters to lead federal agencies, halted investigations into crypto companies and established a "strategic Bitcoin reserve." (Bitcoin plummeted $5,000 within an hour of news of the opening of reserves on Thursday.) Trump himself has huge economic interests in the crypto space. On Friday, the White House plans to hold a "crypto summit" to invite industry leaders to attend. The proposal from the Ministry of Housing and Urban Development suggests that the government may seek a new way to support the industry: incorporating blockchain and possible cryptocurrencies into daily spending and accounting practices of federal agencies. The move is in line with Trump’s apparent desire to use blockchain to monitor federal spending. Dennis and Housing and Urban Development spokesman Casey Lovett both denied colleagues’ claims. "The department has no plans for blockchain or stablecoins. Education is not implemented," Lovett said. Robert Judson, an EY executive involved in the conversation, confirmed that there was indeed such a conversation. “Our company is having discussions with some of the staff at the agency,” he said on the phone. Judson told ProPublica that he would seek EY’s approval for a full interview and did not call again afterwards. Neither the White House, Ernst & Young nor Musk responded to requests for comment.