A senior U.S. military commander has described Bitcoin as a cybersecurity tool with potential use in national defense.
Summary
- A U.S. military commander said Bitcoin can function as a cybersecurity tool, noting its proof-of-work design raises the cost for potential attackers.
- Lawmakers examined Bitcoin’s role in national security during a Senate hearing focused on Indo-Pacific threats and cyber risks from state-linked actors.
At a Senate Armed Services Committee hearing on Tuesday, Samuel Paparo said Bitcoin’s role goes beyond financial use cases and can support security systems tied to U.S. strategic interests.
“It is a valuable computer science tool, as a power projection,” Paparo said, adding that the network’s proof of work design “imposes more cost” on attackers attempting to interfere with it.
“Outside of the economic formulation of it, it has got really important computer science applications for cybersecurity.”
The hearing focused on the U.S. military’s posture in the Indo-Pacific, with discussions spanning ongoing conflicts in Ukraine and the Middle East, China’s military activity, and threats linked to North Korea.
Paparo’s remarks follow earlier comments from Jason Lowery, who has argued that proof-of-work networks can be used to secure digital systems in a cyber conflict. He said Bitcoin is often seen only as a monetary system, while its design can also secure “all forms of data, messages, or command signals.”
State-linked cyber operations have increased in recent years, with attacks such as ransomware, phishing, and denial of service targeting infrastructure and financial systems. The Lazarus Group remains one of the most prominent examples, having stolen billions in crypto over the past decade, funds that U.S. officials say have supported North Korea’s nuclear program.
Paparo’s comments came after Tommy Tuberville asked how the U.S. could lead in Bitcoin-related competition, noting that Chinese policy groups are also examining the asset as a strategic tool. Paparo did not directly address policy steps but pointed to Bitcoin’s underlying structure.
“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,” he said.
Concern over reliance on foreign-made mining hardware has also drawn attention in Washington, even as the U.S. holds the largest Bitcoin reserves among nation states and a significant share of global hashrate.
Last month, Bill Cassidy and Cynthia Lummis introduced the Mined in America Act, aimed at expanding domestic production of Bitcoin mining equipment. The proposal also seeks to formalize the Strategic Bitcoin Reserve established under an executive order signed by Donald Trump.
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