That's how it should be. Public transparency for public funds. Private transactions for private citizens.
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Agree on the transparency, but I think the whole blockchain thing is a bit misguided. A blockchain is neither necessary nor sufficient for transparency.
Much would be confidential, classified, blacked out, etc ..
But that aside, you going to go through $7 trillion of payments each year and revenue? Billions and billions of transactions annually likely.
There is a reason the Treasury dept is so big, nevermind the millions of other employees who spend money.