On April 21, Admiral Samuel Paparo addressed the Senate Armed Services Committee during a review of the US Indo-Pacific Command (INDOPACOM) ahead of the fiscal year 2027 defense budget request. During this session, he revealed that INDOPACOM is operating a Bitcoin node, recognizing its architecture as crucial for network security and power projection.
Previously, in February 2024, Paparo had expressed concerns to Senator Elizabeth Warren regarding cryptocurrencies, citing their ‘opaqueness’ as a facilitator of proliferation, terrorism, and illicit activities. Despite these concerns, he acknowledged the potential of blockchain technology to secure financial transactions.
Historically, Washington perceived cryptocurrency primarily as a compliance challenge and a tool for sanctions evasion, often linked to funding North Korean operations. However, Paparo’s current stance highlights Bitcoin’s cryptographic strength, accountability through its blockchain, and proof-of-work mechanism as integral components for enhancing network security and projecting power.
This shift in terminology from pathology to protocol may be influenced by the work of Jason Lowery, author of ‘SoftWar’ and a US Space Force member. Lowery advocates that Bitcoin’s proof-of-work can redefine national defense strategies against cyber threats.
Paparo’s evolving perspective aligns with broader policy developments. In January 2025, the White House declared its intent to protect lawful access to public blockchain networks and promote dollar-backed stablecoins globally, distinguishing open blockchains as essential infrastructure. This was followed by establishing a Strategic Bitcoin Reserve on March 6, 2025, treating Bitcoin similarly to gold in sovereign-asset terms.
On July 18, 2025, the GENIUS Act passed, framing stablecoin regulation within the context of maintaining the dollar’s reserve currency status and expanding its scope. By April 2026, Treasury had proposed rules for implementing the act’s anti-money laundering requirements and launched a cybersecurity initiative targeting digital asset firms, recognizing them as vital to financial sector resilience.
INDOPACOM’s posture in April 2026 focuses on countering Chinese objectives through information superiority and deploying zero-trust architectures. Within this strategic context, Paparo’s remarks on Bitcoin resonate with the command’s mission language, emphasizing its role in network security.
In January 2026, Reuters reported that China’s mBridge platform processed over $55.5 billion in cross-border transactions, predominantly using digital yuan. The Indo-Pacific region is a battleground for payment architectures, with INDOPACOM playing a pivotal role.
Washington’s current stance differentiates between open public blockchains, which receive infrastructure-grade protection, Bitcoin treated as a reserve asset, and stablecoins framed within statecraft considerations. Other digital assets remain subject to stringent compliance measures.
The trajectory from the January 2025 executive order through the Strategic Bitcoin Reserve suggests an evolving view of Bitcoin from mere asset class to strategic infrastructure component. However, significant illicit activities linked to cryptocurrencies could potentially revert this perspective.
Paparo’s remarks signify a shift in how Bitcoin is discussed within Washington policy circles, expanding its relevance beyond traditional financial regulation discussions into budgetary and sovereign-wealth considerations.