Admiral Samuel Paparo, head of U.S. Indo-Pacific Command, told the Senate Armed Services Committee that Bitcoin (CRYPTO: BTC) “shows incredible potential” as a tool for U.S. national security in the competition against China.
The Power Projection Tool
Paparo testified before Congress on April 21 in response to Senator Tommy Tuberville (R-AR), who asked how leadership in Bitcoin might affect U.S. leverage, resilience, and deterrence in competition with China.
“Our research into Bitcoin is as a computer science tool,” Paparo said.
“It’s the combination of cryptography, a blockchain, and a proof of work. And Bitcoin shows incredible potential as a computer science tool,” he added.
Moreover, Paparo said Bitcoin’s proof-of-work system can impose real-world costs beyond traditional network security measures.
Beyond The Economic Use Case
The admiral emphasized applications “outside of the economic formulation” of Bitcoin.
He described Bitcoin as a “peer-to-peer, zero-trust transfer of value” and said such systems could support “all instruments of national power.”
Tuberville asked what recommendations Paparo has for Congress on how the U.S. can lead on Bitcoin competition.
Paparo said he would have to go deeper on that for the record but added that “anything that supports the all instruments of national power for the United States of America is to the good.”
The China Competition Context
Senator Tuberville noted that last year, the Chinese Communist Party’s main monetary think tank published research on Bitcoin as a strategic asset.
This came after President Donald Trump moved to establish a strategic Bitcoin reserve.
“Our competition with China isn’t just about military strength, it also includes monetary strength as well,” Tuberville said.
The Military Push For Bitcoin
The push to use Bitcoin within military operations has been under discussion for several years.
In a 2022 Naval Postgraduate School report, security professional Michael C. Pero examined Bitcoin’s potential role within U.S. Special Operations Command.
Pero argued that early adoption could provide “a suite of tactical tools and options to counter Chinese expansion.”
He wrote that Bitcoin could “enable human intelligence operations” and “modernize frontline payment methods with the use of digital tokens and e-wallets.”
Meanwhile, during Russia’s 2022 invasion of Ukraine, Kyiv raised more than $200 million in crypto donations, demonstrating how decentralized networks could rapidly fund military efforts across borders.
Image: Shutterstock
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