In a significant shift within the military’s approach to cryptocurrency, Admiral Samuel Paparo, commander of the U.S. Indo-Pacific Command (INDOPACOM), has publicly supported the strategic value of Bitcoin during a recent Senate Armed Services Committee (SASC) hearing. His endorsement comes amid heightened tensions with China, which is believed to possess a substantial reserve of Bitcoin, potentially totaling around 194,000 BTC sourced from massive fraud operations like the PlusToken Ponzi scheme.
While the Chinese government has not officially confirmed or disclosed its digital asset holdings, the sheer scale of these holdings has raised concerns in Washington, leading to discussions on the potential establishment of a strategic reserve. The narrative was further fueled when former President Trump signed an executive order in 2025 to create a Strategic Bitcoin Reserve, utilizing BTC acquired through various legal processes. This initiative treats Bitcoin as a long-term reserve asset, with the Biden administration emphasizing its significance for national security.
During the Senate hearing, Paparo was questioned by Senator Tommy Tuberville regarding Bitcoin’s role in countering China’s geopolitical advancements. Tuberville, a proponent of the BITCOIN Act—which proposes that the U.S. Treasury accumulate one million BTC—highlighted the need for a proactive stance on digital assets. Paparo responded by discussing the benefits of Bitcoin as a potent computer science tool for national defense, citing its applications in cybersecurity and its capacity as a method for exerting national power.
Paparo explained the intricate computer science principles behind Bitcoin, noting how its blockchain, cryptographic security, and proof-of-work protocols offer advantages in both offensive and defensive cyber operations. He articulated that the decentralized, peer-to-peer nature of Bitcoin transfers presents an invaluable asset for U.S. national security efforts.
This endorsement marks a notable departure from Paparo’s previously cautious stance on cryptocurrencies. Just two years prior, he had raised alarms about their potential use by malicious actors and their obfuscation capabilities, citing cryptocurrencies as facilitators of illicit activities. However, in his latest testimony, he refrained from expressing any of those concerns, indicating a shift towards recognizing Bitcoin’s potential benefits.
As the landscape of cryptocurrency continues to evolve, Paparo’s newfound support raises questions about the future role of digital currencies in national defense strategies, especially in the context of international competition with nations like China. The discussion surrounding Bitcoin’s potential as a tool for maintaining national superiority is only expected to grow in prominence as the U.S. navigates this increasingly complex technological frontier.
