A senior U.S. military commander has highlighted Bitcoin as more than just a financial asset, describing it as a powerful cybersecurity tool with potential applications in national defense.
Summary
A U.S. military official said Bitcoin’s proof-of-work system could strengthen cybersecurity by increasing the cost of attacks. Lawmakers explored its national security relevance during a Senate hearing focused on Indo-Pacific risks and state-backed cyber threats.
During a Senate Armed Services Committee hearing, Samuel Paparo noted that Bitcoin’s utility extends beyond finance and could support systems tied to U.S. strategic interests.
“It is a valuable computer science tool, as a form of power projection,” Paparo said, explaining that the network’s proof-of-work mechanism makes it more expensive for adversaries to interfere. “Beyond its economic function, it has important cybersecurity applications.”
The hearing examined the U.S. military’s posture in the Indo-Pacific, alongside ongoing conflicts in Ukraine and the Middle East, as well as rising concerns around China and North Korea.
Paparo’s comments echo earlier views from Jason Lowery, who has argued that proof-of-work networks like Bitcoin can secure not just financial transactions but also data, communications, and command systems during cyber conflicts.
Cyberattacks linked to nation-states have intensified in recent years, targeting infrastructure and financial systems through ransomware, phishing, and denial-of-service campaigns. Groups such as Lazarus Group have reportedly stolen billions in crypto, with U.S. officials alleging the funds supported Pyongyang’s nuclear program.
Paparo’s remarks came in response to questions from Tommy Tuberville, who raised concerns about U.S. competitiveness in Bitcoin-related technologies, noting that policy circles in China are also exploring its strategic potential. While Paparo did not outline specific policy measures, he emphasized the significance of Bitcoin’s underlying architecture.
“Bitcoin is a reality. It is a peer-to-peer, zero-trust system for transferring value. Anything that strengthens the instruments of national power for the United States is a positive,” he said.
Push for domestic mining infrastructure
Lawmakers are also turning their attention to reducing reliance on foreign-made mining hardware. Despite the U.S. holding one of the largest national Bitcoin reserves and a significant share of global hashrate, supply chain concerns remain.
Last month, Bill Cassidy and Cynthia Lummis introduced the Mined in America Act, aimed at boosting domestic production of Bitcoin mining equipment. The proposal also seeks to formalize a Strategic Bitcoin Reserve established under an executive order signed by Donald Trump.
