Pentagon Brass Floats Bitcoin as Strategic Weapon Against Hostile Nations

US military leaders are reportedly eyeing Bitcoin reserves as a financial countermeasure against adversarial states—because nothing says ’deterrence’ like volatile crypto assets.

Senator Lummis drops bombshell revelation: Digital gold may soon join artillery shells in America’s defense arsenal. Who needs economic sanctions when you’ve got 24/7 crypto markets?

Here’s the battlefield calculus: A sovereign Bitcoin stash could bypass traditional financial blockades, hitting aggressors where it hurts—their wallets. Though skeptics wonder if this is just another case of generals chasing the shiny object du jour while Wall Street quietly shorts the news.

What to Know:

• Military generals support Bitcoin reserve because economic power equals military power against global aggressors • Lummis wants U.S. to hold 5% of world’s Bitcoin supply, matching current gold reserve strategy
• 30 states are considering Bitcoin reserve legislation this year, with three already advancing bills

The Strategic bitcoin Reserve Act, reintroduced March 11 by Lummis and five other senators, would direct the Treasury to acquire up to 1 million Bitcoin over five years. President Donald Trump has expressed support for the legislation, according to Lummis.

Military commanders understand that economic strength directly correlates with national security effectiveness when confronting international threats, the senator explained. "Economic power is just as important as military power when dealing with aggressors around the world," she told conference attendees.

Lummis compared Bitcoin to "digital gold" and argued the United States should mirror its precious metals strategy. The country currently holds approximately 5% of global Gold reserves. "We need to have at least 5% of the world’s Bitcoin in reserve," she stated.

The proposal connects directly to broader energy and industrial policies, Lummis noted. China’s 2021 Bitcoin mining ban shifted operations to North America, creating opportunities Trump has urged the country to maximize through combined energy and cryptocurrency strategies.

However, the senator believes a national Bitcoin stockpile represents the most effective path to securing long-term geopolitical advantages over competitors.

State Initiatives Drive Innovation Forward

Thirty American states are actively considering Bitcoin reserve legislation this year, reflecting growing momentum at the local level. Lummis described states as traditional "incubators of innovation" that historically drive national policy changes.

Three states have already advanced concrete proposals in 2025. New Hampshire passed House Bill 302, authorizing allocation of 5% of state funds into Bitcoin for portfolio diversification purposes.

Arizona’s House Bill 2749 establishes a cryptocurrency stockpile funded through unclaimed assets and staking rewards rather than direct taxpayer investment. Texas is pushing Senate Bill 21, which WOULD create a state-managed Bitcoin reserve stored in cold storage facilities for enhanced security.

The movement extends beyond American borders, according to Lummis. The United Arab Emirates has gained Bitcoin exposure through U.S. spot exchange-traded funds, while the Czech Republic explores incorporating digital assets into central bank diversification strategies.

These international developments demonstrate growing recognition of cryptocurrency’s strategic value among national governments worldwide.

Global Recognition Grows

International adoption of Bitcoin reserves reflects broader acceptance of digital currencies as legitimate government assets. The UAE’s approach through American ETFs shows how nations can gain exposure without direct cryptocurrency purchases.

The Czech Republic’s central bank exploration represents a significant shift among traditional European financial institutions. Such moves indicate growing institutional comfort with Bitcoin as a diversified portfolio component.

Closing Thoughts

Military endorsement of Bitcoin reserves signals a fundamental shift in how defense leaders view economic security in the digital age. With federal legislation pending and 30 states considering similar measures, the United States appears positioned to lead global adoption of cryptocurrency reserves as strategic assets.