U.S. payment system processes $5.4 trillion annually amid concerns over security

The U.S. government operates a secure payment system responsible for processing around $5.4 trillion in payments annually. This system is managed by the Treasury Department's Bureau of the Fiscal Service, which utilizes a programmable electronic framework established in the late 1950s. This infrastructure was developed to ensure that payments, such as checks or deposits to citizens, are processed efficiently and reliably. The system relies on a payment file that triggers the processing of payments according to specified instructions. The Bureau does not decide on the payments themselves; instead, it follows directives from other government entities. This division of responsibility highlights the potential for micropolitical influences within the organization, where decisions on purchasing technology and software occur. One noteworthy aspect of this payment system is its reliance on COBOL, a programming language created under the guidance of the Department of Defense. The vintage of software raises concerns about potential vulnerabilities, especially given the complexity of the system. As this outdated technology is susceptible to manipulation or errors, questions about security and operational integrity arise. In conclusion, the juxtaposition of outdated technology with the massive scale of financial transactions creates an environment ripe for scrutiny. Policymakers and stakeholders must consider the challenges associated with an old system managing such significant amounts of money, notably as discussions surrounding digital currencies, such as DOGE, begin to emerge.