- Admiral Samuel Paparo called Bitcoin a “valuable computer science tool” for national security at a Senate hearing.
- He argued Bitcoin’s proof-of-work technology imposes costs on attackers, providing Cybersecurity benefits beyond economics.
- The comments align with previous US Space Force analysis and come as senators introduce mining legislation.
- National security concerns include reliance on foreign mining hardware, which a new bill aims to address.
A senior US military commander has publicly endorsed Bitcoin’s strategic value for national security, highlighting its role beyond finance during a Senate Armed Services Committee hearing this week. Admiral Samuel Paparo testified that the cryptocurrency serves as a critical tool for cybersecurity and power projection in an increasingly digital world.
He specifically praised Bitcoin’s proof-of-work mechanism, stating it “imposes more cost” on potential network attackers. Paparo emphasized that “outside of the economic formulation of it, it has got really important computer science applications for cybersecurity,” according to his testimony.
His perspective echoes earlier comments from US Space Force member Jason Lowery in December 2023. Lowery had argued that Bitcoin’s technology could secure all forms of data, not just monetary value, for national defense.
Consequently, this focus comes as state-linked groups increasingly use cyberattacks for sabotage and profit. The notorious Lazarus Group from North Korea, for instance, has stolen billions in crypto to fund its weapons programs.
Meanwhile, US Senator Tommy Tuberville questioned how America could lead in Bitcoin competition, noting China also views it strategically. Paparo responded by calling Bitcoin a reality and a peer-to-peer zero-trust transfer of value.
However, the US faces supply chain risks despite holding large Bitcoin reserves and hashrate. It remains dependent on foreign-manufactured mining equipment, raising security concerns.
Last month, Senators Bill Cassidy and Cynthia Lummis introduced the Mined in America Act to tackle this vulnerability. The bill aims to bring more Bitcoin mining manufacturing back to the United States.
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