A US admiral has highlighted the strategic value of Bitcoin as more than just a financial asset. US Admiral Samuel Paparo, speaking at a Senate Armed Services Committee hearing, stressed that Bitcoin can be seen as a great technology that can improve the national security position and increase the US global influence and called it a “very valuable computer science tool.”
He added that since Bitcoin technology uses a proof-of-work algorithm, it is challenging for adversaries to hack the system and carry out attacks on the network. The US admiral pointed out that using Bitcoin will help the government defend itself against cyberattacks.
US Admiral says Bitcoin can serve as a way of power projection in the digital sphere
This discussion was a part of a debate about the strategic position of the US in the Indo-Pacific region. During the discussion, lawmakers considered such geopolitical issues as conflicts, the growth of Chinese military powers, and North Korean threats.
In this regard, the US admiral explained how such emerging technologies as Bitcoin may contribute to solving contemporary security challenges in cyberspace.
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Such a position corresponds to the previous one of defense officials, who believe that the technology of Bitcoin can ensure the protection not only of the financial transaction process but also of the communication, integrity, and command processes.
The current comments of the US official are relevant in the light of the development of contemporary cyber threats that include, among other things, such methods as phishing, distributed denial-of-service, and ransomware. For instance, the operation of North Korean hackers called Lazarus has shown the potential to earn money using cyber means.
Discussion about international competitiveness related to Bitcoin was also raised during this discussion. Policymakers expressed their worries about other countries, such as China, starting to realize the strategic importance of Bitcoin.
Although the US admiral did not speak explicitly about the topic of competitiveness, he emphasized that Bitcoin has become a reality, which represents a peer-to-peer system based on zero trust.
From the policymakers’ perspective, work is being done at present to improve America’s standing in the area of Bitcoin. The country has already accumulated a large amount of Bitcoin as well as taken a considerable share of its mining operations. Still, the United States relies on foreign manufacturers for its mining equipment.
Legislative action is taken to reduce the dependence of the country on its international counterparts and make Bitcoin a strategic technology. These policies can help the United States build greater technological independence.
Overall, the discussion by the US admiral focused on the changing nature of power in modern days, where new technologies define national security. Such technologies as Bitcoin, which make things more resilient and trustworthy, have the potential to influence geopolitics in the future.
