A senior US military commander has lauded Bitcoin as a “valuable computer science tool,” arguing its usefulness extends beyond monetary applications and can support US national security interests.
“It is a valuable computer science tool, as a power projection,” Admiral Samuel Paparo said at a Senate Armed Services Committee hearing on Tuesday, adding that Bitcoin’s proof-of-work technology “imposes more cost” on attackers attempting to compromise the network:
“Outside of the economic formulation of it, it has got really important computer science applications for cybersecurity.”
The Senate hearing looked into the strategic posture of US forces in Indo-Pacific, including ongoing conflicts in Ukraine and the Middle East, China’s military expansion and coordination with foreign adversaries, and threats from North Korea.
Paparo’s remarks echo similar comments from US Space Force member Jason Lowery in December 2023, who said Bitcoin and other proof-of-work blockchains could protect the US in cyberwarfare.
At the time, he said that while Bitcoin is mostly seen as a “monetary system” to secure funds, few know that Bitcoin can be used to secure “all forms of data, messages or command signals.”
“As a result, this misconception underplays the technology’s broad strategic significance for cybersecurity, and consequently, national security.”
Research into Bitcoin’s use as a cybersecurity tool comes as many adversaries — including state-linked actors — have turned to cyberattacks such as phishing, ransomware and distributed denial-of-service to sabotage infrastructure and secure economic advantages.
North Korea’s notorious Lazarus Group is one of the most notable examples of this, having stolen billions of dollars in crypto over the past decade to support its nuclear program.
Paparo’s comments came in response to a question from US Senator Tommy Tuberville, who asked how the US and Congress can lead on Bitcoin competition, noting that China’s top monetary think tank now also views Bitcoin as a strategic asset.
Paparo didn’t address the question directly but added, “Bitcoin is a reality. It is a peer-to-peer zero-trust transfer of value. Anything that supports all instruments of national power for the United States of America is to the good.”
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The US holds the largest Bitcoin reserves among nation-states and holds the largest share of Bitcoin hashrate. However, it remains reliant on foreign-manufactured mining equipment, an issue that has raised national security concerns related to supply chain risks.
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Last month, US Senators Bill Cassidy and Cynthia Lummis introduced the Mined in America Act to resolve that issue by bringing more Bitcoin mining manufacturing back to the US.
It also seeks to codify Trump’s executive order establishing the Strategic Bitcoin Reserve.
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