Federal Payments Go Fully Digital on September 30, 2025 — What It Means & Why It Matters

On March 25, 2025, the President signed Executive Order 14247, titled “Modernizing Payments To and From America’s Bank Account.” (The White House) This EO mandates a sweeping shift: the U.S. federal government will largely phase out paper checks and paper-based payment systems, moving toward electronic payments — both for disbursements (payments made by the government) and receipts (payments made to the government). (Treasury Financial Experience)

Key Provisions & What’s Changing on September 30

Here are the main changes coming into effect September 30, 2025: (U.S. Department of the Treasury)

• No more paper checks for most federal disbursements: This includes vendor payments, benefit payments (e.g. Social Security), tax refunds, intragovernmental payments, etc., to the extent permitted by law. (The White House)
• All agencies must transition to electronic funds transfer (EFT) methods (e.g. direct deposit, prepaid cards, digital wallets, real‐time payments) for payments out. (The White House)
• Payments to the federal government, where permissible under law, must also be processed electronically. That means fees, fines, taxes, etc. (The White House)
• Exceptions: There are carve‐outs for certain cases, e.g. unbanked or underbanked individuals, emergency payments where electronic methods would cause undue hardship, or where circumstances (statutory, regulatory or otherwise) legitimately prevent usage of electronic means. (The White House)
• A public awareness campaign is required. The Treasury will issue guidance and outreach to help people and entities adjust. (The White House)

Why This EO Is Important

• Costs & inefficiencies: Paper checks are far more expensive to process; they also carry risks of loss, theft, alteration, return, etc. (The White House)
• Fraud risk reduction: Paper checks are famously a weak link. EFT and digital payments allow better traceability, security and fraud detection. (The White House)
• Modernizing infrastructure: Aligning with how payments are increasingly done in the private sector. Bringing government payments into an updated, more resilient and efficient system.
• Financial inclusion aspects: For people without good banking access, there are real implications. The EO acknowledges this, and exceptions or alternative supports need to be provided. (The White House)

What to Watch Out For / What Stakeholders Should Do

For those reading this from outside or with cross‐border, offshore, or financial institution interests, here are things to monitor/prepare:

• Recipient readiness: Many individuals or businesses still rely on checks. Do they have bank accounts capable of receiving EFTs? Do they understand how to set these up?
• Unbanked populations: How will people without bank accounts (or digital payment access) be accommodated? Ensuring inclusion is critical.
• Regulatory & legal constraints: Some parts of law may still require checks or paper documentation. Agencies must navigate that.
• Operational change management: For agencies, vendors, and partners, system changes, payment processor changes, staffing/training, etc.
• Possible tech & security risks: With more electronic flows, cybersecurity, identity verification, fraud prevention become even more central.

Metal Blockchain: A Primer & Its Relevance

As Invest Offshore readers know, blockchain technologies are transforming finance and cross‐border transactions. One project attracting attention is Metal Blockchain (by Metallicus, Inc.). Here’s how it works and why it might matter in a world where digital, compliant payment flows are becoming more central.

What is Metal Blockchain?

Here are the key features and architecture of Metal Blockchain: (docs.metalblockchain.org)

• Layer-0 blockchain: Metal offers a “layer zero” protocol — meaning it underlies, connects, or supports multiple chains and subnets. It’s intended to provide base infrastructure for high throughput, secure, interoperable networks. (docs.metalblockchain.org)
• Snow protocols / Avalanche heritage: It builds on the Snow / Avalanche consensus family, enabling fast finality, low latency, high performance. (docs.metalblockchain.org)
• Subnets / multiple chains: It supports many subnets (private or otherwise) such that each subnet can run its own rules, and collectively the system can handle large aggregate throughput. (docs.metalblockchain.org)
• Smart contract environments: Supports EVM (Ethereum Virtual Machine) via its C-Chain for Solidity contracts, and an A-Chain for payments/DeFi based on EOSIO / WebAssembly (XPR Network). (help.metalblockchain.org)
• Digital identity / compliance built in: Metal emphasizes features such as WebAuthn, biometric access, on‐chain identity, BSA (Bank Secrecy Act) compliance, etc. (metalblockchain.org)
• Token model: The native token is $METAL. It is used for staking (securing the network), for paying transaction fees, and acts as a unit of account among subnets. Key metrics: hard‐capped supply (~666,666,666 METAL), fee burning (part of fees are destroyed), staking rewards; distribution among founders, the foundation, etc. (metalblockchain.org)

How Metal Blockchain Might Fit Into the New Federal Payments Landscape

Given the shift mandated by EO 14247 toward digital, secure, compliant payments, Metal Blockchain could be relevant in several ways:

• Regulated financial institutions & fintechs: Because Metal is positioning itself as “BSA-ready” with strong identity / compliance features, it could be attractive to banks, credit unions, payment service providers who want to build secure systems for federal payments or government contracts.
• Private/private‐public blockchain solutions: Some of the EO’s goals involve secure, efficient flows and reducing fraud; blockchain systems with transparent logs, strong identity, built‐in auditability could support those particularly for interfacing with governments or complying with oversight requirements.
• Digital wallets, real-time payments, tokenization: Metal’s architecture allows for faster settlement, potential for tokenized assets/liabilities, etc., which align with the trend away from paper to instant and digital systems.
• Cross-border or interoperability potential: For jurisdictions or sectors (offshore, international payments, remittances) where there is friction in current systems, blockchain might help provide an alternative or supplement to traditional rails, provided regulation and acceptance are in place.

Implications for Offshore / Non-U.S. Investors & Institutions

For investors, financial institutions, or service providers outside the U.S., or with operations that touch U.S. government flows, here are takeaways:

• Partnering or servicing U.S. agencies / vendors: There will be pressure (and often legal requirement) to comply with the federal mandate. If you provide services to U.S. government contractors, vendors, or receive payments from U.S. federal agencies, being able to accept EFTs and conform to the new payment infrastructure will be essential.
• Regulatory alignment: Blockchain players or fintechs abroad might explore aligning their compliance posture (AML/KYC, identity verification, etc.) such that they could integrate with U.S. systems or serve U.S. clients under the modernized payment framework. Metal Blockchain’s model is one example of building these features natively.
• Risks & challenges: Not all digital payment systems are created equal. Security, regulatory recognition, identity verification, cross‐jurisdiction consistency all matter. Also, access to banking and digital payments (for individuals) is uneven, both within and outside the U.S.
• Opportunities: For innovation: tokenization, faster payments, stablecoins, blockchain infrastructure could play a role. If done well, there may be room for offshore entities to build compliant infrastructure that plugs into U.S. flows or fills gaps.

Conclusion

September 30, 2025 marks a big shift — for millions of U.S. citizens, vendors, benefit recipients, and every agency — from paper to electronic. It’s a natural move in many ways, but implementing it smoothly, equitably, and securely will require careful coordination, especially to avoid leaving behind unbanked populations or underprepared entities.

At the same time, technologies like Metal Blockchain illustrate how financial infrastructure is evolving to support secure, compliant, efficient digital payment and asset systems. For those offshore, institutions or individuals who can align with emerging standards (identity, compliance, settlement speed) may find both risk and opportunity in the coming years.