US Admiral Calls Bitcoin a Tool for American Power Projection
📋 En bref (TL;DR)
- Historic first: Admiral Samuel Paparo, commander of US forces in the Indo-Pacific, described Bitcoin as a tool for “power projection” before the US Senate on April 21, 2026.
- Key quote: Bitcoin is “a valuable computing tool” with “really important applications in cybersecurity,” according to the highest-ranking military officer in the Pacific.
- Geopolitical context: The testimony comes amid an escalating standoff with China, whose leading monetary think tank is now studying Bitcoin as a strategic asset.
- Strategic reserve in limbo: Trump’s executive order (March 2025) establishing a Strategic Bitcoin Reserve still awaits congressional authorization to become operational.
- Kevin Warsh pro-crypto: On the same day, the nominee for Fed Chair stated that “digital assets are already part of the fabric of our financial industry.”
- Global race: From the Strait of Hormuz (Iran) to El Salvador, Bitcoin is emerging as a foreign policy instrument and a sanctions evasion tool.
- American mining dominance: The United States controls roughly 38% of the global hash rate, consolidating its technological edge over China and Russia.
A US admiral puts Bitcoin at the heart of defense strategy
On April 21, 2026, an unexpected statement sent shockwaves through the crypto community and US defense circles alike. Admiral Samuel Paparo, commander of the United States Indo-Pacific Command (INDOPACOM), told the Senate Armed Services Committee that Bitcoin represents “a valuable computing tool, as an instrument of power projection.”
This marks the first time a combatant commander — the highest-ranking military officer responsible for the Pacific theater — has publicly described Bitcoin as a national security asset during congressional testimony. A dramatic shift in tone that signals a turning point in institutional perception of the world’s first cryptocurrency.
What Admiral Paparo actually said
Questioned by Senator Tommy Tuberville (R-Alabama) about the impact of American Bitcoin leadership in the competition with China, Admiral Paparo went far beyond the purely financial dimension. He described Bitcoin as “a peer-to-peer, zero-trust value transfer”, adding that the technology has “really important applications in computing for cybersecurity.”
More specifically, Paparo emphasized that Bitcoin’s proof-of-work mechanism “imposes additional costs” on attackers attempting to compromise the network — going well beyond simple algorithmic security. His verdict: “anything that supports the full range of instruments of US national power is a positive.”
Jason Lowery’s “Softwar” thesis validated by the Pentagon?
Admiral Paparo’s remarks echo the thesis of Major Jason Lowery, a US Space Force officer and MIT researcher. In his book Softwar (2023), Lowery theorizes that Bitcoin’s proof-of-work constitutes an unprecedented form of power projection in cyberspace. He argues that imposing physical (energy) costs on adversaries in the digital domain represents a strategic advantage comparable to traditional military deterrence.
The thesis was placed under security review by the Department of Defense after publication — a sign that the Pentagon was already taking the subject seriously. With Paparo’s testimony, these ideas have moved from the academic sphere into the official discourse of an active combatant commander.
Kevin Warsh and the Fed: another pro-crypto signal on the same day
The timing is striking. On the very same April 21, 2026, Kevin Warsh, nominated by Donald Trump to chair the Federal Reserve, was testifying before the Senate Banking Committee. Asked by Senator Cynthia Lummis about the role of digital assets in the financial system, Warsh responded unequivocally: “Digital assets are already part of the fabric of our financial industry, so yes.”
Warsh also rejected the idea of a central bank digital currency (CBDC), calling it a “bad policy choice.” His personal portfolio, disclosed in his financial filings, includes stakes in more than twenty blockchain companies, including Solana, dYdX, Bitwise, and Polymarket, totaling an estimated $192 million. These positions must be divested within six months under Fed ethics rules.
Two Senate hearings, on the same day, carrying the same message: Bitcoin and cryptocurrencies are no longer a fringe phenomenon — they are a matter of national power.
The Strategic Bitcoin Reserve: a year of waiting
Admiral Paparo’s testimony fits within a broader context of American positioning on Bitcoin. On March 6, 2025, President Trump signed an executive order establishing the Strategic Bitcoin Reserve of the United States, to be capitalized with BTC seized during legal proceedings.
Yet one year later, the reserve still does not concretely exist. The US Treasury has determined that implementation requires legislative authorization from Congress to create the specialized accounts needed. Patrick Witt, Trump’s crypto advisor, has cited “unprecedented legal questions” that remain unresolved.
The best chance for passage may come through the National Defense Authorization Act (NDAA) at the end of 2026, according to sources close to the legislative process. Senator Cynthia Lummis has already introduced a dedicated bill for the reserve, and Paparo’s testimony — explicitly linking Bitcoin to national defense — could serve as a decisive argument for hesitant lawmakers.
Bitcoin as a geopolitical weapon: global precedents
The United States is not alone in viewing Bitcoin through a strategic lens. Several recent developments illustrate the cryptocurrency’s transformation into a foreign policy instrument.
Iran: Bitcoin tolls in the Strait of Hormuz
Since March 2026, Iran’s Islamic Revolutionary Guard Corps (IRGC) has been imposing transit fees on ships passing through the Strait of Hormuz — a chokepoint through which 21 million barrels of oil flow daily. The toll: roughly $1 per barrel of cargo, payable in Chinese yuan, Bitcoin, or USDT. A loaded oil tanker can thus generate up to $2 million per transit.
By some estimates, this system brings in between $600 and $800 million per month for Iran, completely bypassing the SWIFT system and US sanctions. Bitcoin’s peer-to-peer nature makes tracking these transactions extremely difficult for Western authorities — illustrating precisely the double-edged nature of the technology that Admiral Paparo seeks to harness.
Russia: toward a legal framework for international crypto trade
The Russian Duma has passed in first reading a bill authorizing the use of cryptocurrencies in international trade. The Central Bank of Russia has set a July 1, 2026 deadline to finalize the regulatory framework, including a dedicated stablecoin bill designed to facilitate cross-border payments — a strategy aimed at circumventing Western sanctions.
El Salvador: the pioneer holds firm
Despite pressure from the IMF, El Salvador is maintaining its accumulation strategy with approximately 7,606 BTC in reserves. The country secured a $1.4 billion agreement with the IMF by accepting a compromise: Bitcoin acceptance became optional for merchants, but the state continues to buy daily. The IMF has acknowledged 4% GDP growth, no longer mentioning its previous objections to the Bitcoin strategy.
Taiwan: Bitcoin as a shield in the event of conflict
In April 2026, the Bitcoin Policy Institute published a report urging Taiwan to integrate Bitcoin into its strategic reserves. The argument: in the event of a Chinese blockade or invasion, Bitcoin would remain accessible where dollar reserves (80% of Taiwan’s total) could be frozen. Taiwan’s Ministry of Justice already holds 210 seized BTC, and the central bank is studying a pilot program.
American hash rate dominance: a tangible strategic advantage
Beyond political statements, the United States holds a concrete edge: dominance of Bitcoin’s global hash rate. With approximately 37 to 44% of the network’s computing power (according to Q1 2026 estimates), the US far outpaces Russia and China, which together control roughly 30% of the hash rate.
This dominance is far from trivial. It means that American miners — often publicly traded companies like Marathon Digital, CleanSpark, or Riot Platforms — validate a disproportionate share of Bitcoin transactions. In terms of digital sovereignty, it is the equivalent of controlling undersea cables or communications satellites.
Senator Tuberville notably pointed out during the hearing that the Chinese Communist Party’s leading monetary think tank has published research on Bitcoin as a strategic asset — in direct response to the work of the Bitcoin Policy Institute. The race for dominance over the Bitcoin network has become an openly acknowledged geopolitical contest.
What this means for investors
Bitcoin’s integration into American defense discourse marks a qualitative milestone. For investors, several implications deserve attention:
Accelerated institutional legitimization. When a four-star admiral and a future Fed Chair both make pro-Bitcoin statements on the same day, the signal to markets is unambiguous. Bitcoin is no longer a marginal speculative asset but a tool recognized by the highest levels of American government.
Declining regulatory risk. The prospect of a Bitcoin ban in the United States, sometimes cited as a tail risk, becomes virtually impossible when the military itself describes it as an instrument of national power.
Heightened geopolitical volatility. The use of Bitcoin by state actors (Iran, Russia) to circumvent sanctions may trigger international regulatory pressure, but also sustained structural demand.
The trajectory is now clear: Bitcoin has moved beyond the financial sphere to become a matter of sovereignty. And the United States intends to win this battle.
Glossary
- Strategic Bitcoin Reserve: A program established by executive order in March 2025 to build a national Bitcoin stockpile, analogous to the Strategic Petroleum Reserve. It is capitalized with BTC seized by the US government.
- Power projection: A state’s ability to exert its influence and force beyond its borders. Traditionally a military concept, it now extends to cyberspace through technologies like Bitcoin’s proof-of-work.
- Proof-of-Work: Bitcoin’s consensus mechanism that requires real energy expenditure to validate transactions. This physical constraint makes the network extremely costly to attack.
- Hash rate: The total computing power deployed by miners to secure the Bitcoin network, measured in exahashes per second (EH/s). The higher the hash rate, the more secure the network.
- Federal Reserve (Fed): The central bank of the United States, responsible for monetary policy. Its stance on cryptocurrencies influences global financial markets.
- Digital sovereignty: A state’s ability to control and secure its critical technological infrastructure, now including cryptocurrency networks and mining power.
- INDOPACOM: The United States Indo-Pacific Command, responsible for American military operations in the region stretching from the US West Coast to the Indian Ocean, including the zone of tensions with China.
Frequently Asked Questions
Why is a US admiral talking about Bitcoin?
Admiral Samuel Paparo, commander of INDOPACOM, was questioned by Senator Tuberville about Bitcoin’s role in the strategic competition with China. He responded that Bitcoin’s proof-of-work offers concrete cybersecurity applications and constitutes a tool for US “power projection.”
What is the US Strategic Bitcoin Reserve?
Established by presidential executive order on March 6, 2025, the Strategic Bitcoin Reserve aims to build a national BTC stockpile from bitcoins seized during legal proceedings. One year later, it still awaits congressional authorization to become operational.
What is the connection between Bitcoin and US national security?
Bitcoin’s proof-of-work mechanism imposes real energy costs on attackers, making it a cybersecurity tool. Additionally, American dominance of the hash rate (37-44% globally) represents a strategic advantage over China and Russia.
Is Kevin Warsh favorable toward cryptocurrencies?
Yes. The nominee for Fed Chair stated that digital assets are “already part of the fabric” of the US financial system. He also rejected the idea of a central bank digital currency (CBDC). His personal portfolio includes stakes in more than twenty crypto companies.
Which countries are using Bitcoin as a geopolitical tool?
Several countries are leveraging Bitcoin strategically: the United States (strategic reserve, mining dominance), El Salvador (national reserves of 7,606 BTC), Iran (crypto tolls in the Strait of Hormuz), Russia (legal framework for international crypto trade), and Taiwan (studying a reserve as protection against a conflict with China).
Sources
This article relies on the following sources:
- Cointelegraph — US Admiral Touts Bitcoin a Tool For US Power Projection – Detailed coverage of Admiral Paparo’s testimony (April 21, 2026).
- Bitcoin Magazine — Top U.S. Commander Says Bitcoin “Shows Incredible Potential” – Full quotes and analysis of the Senate testimony.
- PR Newswire / Bitcoin Policy Institute — Indo-Pacific Commander Calls Bitcoin A Tool For U.S. ‘Power Projection’ – Official press release from the Bitcoin Policy Institute.
- CNBC — Kevin Warsh hearing takeaways – Live coverage of Warsh’s confirmation hearing.
- CoinDesk — Those who cheered U.S. Bitcoin reserve have spent year watching Trump order languish – One-year review of the Strategic Reserve executive order.
- Bloomberg — Strait of Hormuz: Ships Paying Iran Yuan and Crypto Tolls – Investigation into Iran’s crypto toll system.
- MIT — Softwar: A Novel Theory on Power Projection and the National Strategic Significance of Bitcoin – Major Jason Lowery’s thesis (2023).
- Hashrate Index — Top 10 Bitcoin Mining Countries of 2026 – Data on global hash rate distribution.
How to cite this article: Fibo Crypto. (2026). US Admiral Calls Bitcoin an Instrument of American “Power Projection”. Retrieved April 22, 2026, from https://fibo-crypto.fr/en/blog/us-admiral-bitcoin-power-projection
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