Defense Secretary Says Bitcoin Serves As Tool For Power Projection

The defense secretary said Bitcoin is a tool of power projection and that the U.S. Department of Defense is already running tests to leverage it. "My short answer would be yes and yes," the defense secretary said during a House Armed Services Committee hearing on April 29.

The responses came after a lawmaker asked whether Bitcoin functions as a tool for power projection and whether the Pentagon is conducting any initiative to leverage the network. The defense secretary added that he believes in the potential of Bitcoin and cryptocurrencies.

He stated that the Pentagon is conducting classified experiments to leverage them for American might.

The comments came after a senior military officer told the same committee on April 22 that the U.S. military is running a Bitcoin node. The officer said it is being used for operational tests to secure and protect networks. The reported experimentation with Bitcoin for defense purposes occurs as Iran has demanded Bitcoin payments for passage through the Strait of Hormuz.

Russia has also used Bitcoin in its oil trade with China and India to evade sanctions, according to a Reuters report from March 2025 that cited four unnamed persons familiar with the matter.

2025 established a U.S. strategic Bitcoin reserve from forfeited assets. The action was taken with the stated goal of giving the United States a strategic advantage due to the cryptocurrency's fixed supply. As Bitcoin receives continued attention in geopolitical and institutional settings, some investors are considering digital assets within a broader multi-asset approach to portfolio construction that includes stocks, crypto and alternative investments.