According to Senator Cynthia Lummis, some divisions within the US military are advocating for the establishment of a national bitcoin reserve. Here are the details:
Background of the Proposal: Amid the escalating economic tensions between the US and China, this proposal has gained momentum. The bipartisan Bitcoin Act introduced in March 2025 aims to formalize cryptocurrency holdings as part of America’s economic defense arsenal.
Reasons for Military Support: Military strategists emphasize bitcoin’s potential to counter financial warfare tactics. Bitcoin has a decentralized architecture that is resistant to foreign interference and a fixed supply that can hedge against currency manipulation. These features make it attractive as a strategic asset in the face of economic threats from China. For example, a Pentagon white paper warns that China could “weaponize CBDCs to bypass dollar dominance” in ASEAN markets. Military leaders believe that bitcoin’s neutrality makes it a perfect countermeasure against state – controlled digital currencies.
Proposal Details: Congressman Nick Begich’s proposed legislation outlines a phased acquisition strategy to acquire 1% of the circulating supply from 2026 – 2028. The defense department would manage the reserve through a new cyber currency division.
Implications of the Proposal: The strategic reserve concept has sparked a debate. Proponents argue that it safeguards economic sovereignty, while critics warn of potential market distortions. As geopolitical tensions evolve, bitcoin’s role appears increasingly intertwined with national security priorities. The support from military leadership adds weight to Lummis’ proposal, which is part of a broader effort to establish a comprehensive cryptocurrency policy in the US.
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