The US military's characterization of Bitcoin is undergoing a fundamental shift.
According to Bitcoin Magazine's report on April 22, Admiral Samuel Paparo, commander of the US Indo-Pacific Command (INDOPACOM), testified before the House and Senate Armed Services Committees this week, confirming that the command is currently running a Bitcoin network full node and conducting a series of military cybersecurity tests based on the Bitcoin protocol.
Paparo is the top commander of the largest of the US's six unified combatant commands, overseeing approximately 380,000 military personnel and responsible for the Indo-Pacific theater that covers half the Earth's surface.
In his testimony, Paparo explicitly defined Bitcoin as a "computer science tool" and a "means of power projection," rather than a speculative financial asset. This is the first time a senior US military officer has made such a characterization of Bitcoin in a congressional public setting, and it is the first known instance of a US combatant command directly engaging with the Bitcoin peer-to-peer network.
Senate Testimony: Bitcoin is a "Tool of National Power"
On April 21, Paparo, during the Senate Armed Services Committee's Fiscal Year 2027 National Defense Authorization Act review hearing, responded to Senator Tommy Tuberville's (Republican, Alabama) inquiry about Bitcoin's strategic value.
Tuberville asked directly whether the US's leading position in the field of Bitcoin could enhance deterrence against China.
Paparo did not evade the question, telling the committee that INDOPACOM's research focuses on the underlying computer science architecture of Bitcoin, including the fusion of the three key technical components: cryptography, blockchain, and proof of work.
Paparo stated, "Bitcoin is a reality. It is a peer-to-peer, trustless value transfer system. Anything that undergirds all instruments of national power for the United States is advantageous." He also added, "Beyond its economic attributes, Bitcoin has very significant computer science applications in the field of cybersecurity."
Paparo further elaborated on the military potential of the proof-of-work protocol. He pointed out that Bitcoin's proof-of-work mechanism "imposes costs far beyond mere algorithmic network defenses," and its applications can extend to offensive and defensive cyber operations.
In other words, the Pentagon is not interested in Bitcoin's price movement, but rather in its role as a "computational security architecture that makes attacks costly."
House Hearing Confirms: "We Have a Node on the Bitcoin Network"
On April 22, Parlatore further elaborated before the House Armed Services Committee in response to Representative Lance Gooden (Republican, Texas), revealing more details.
According to an official press release from Gooden's office and a verbatim transcript of the hearing, Parlatore explicitly stated, "We are currently in an experimental phase. We currently have a node on the Bitcoin network. We are not mining. We are using it for monitoring and running tests to utilize the Bitcoin protocol to protect network security."
Gooden also referenced data from the Bitcoin Policy Institute during the hearing, indicating that China currently holds about 194,000 bitcoins, while the U.S. holds approximately 328,000. He asked Parlatore:
In the era of digital competition, should the U.S. maintain a lead in Bitcoin holdings similar to how it safeguards strategic resources like gold and oil?
In response, Parlatore stated that people are currently using Bitcoin to protect their digital assets, illustrating the function of the proof-of-work protocol combined with blockchain and cryptography.
He also expressed support for the GENIUS Act (Stablecoin Legislation Framework) for its positive role in maintaining the dollar's global dominance but refrained from publicly commenting on the "strategic Bitcoin reserve," indicating a preference for in-depth discussions in a classified environment.
Pentagon Narrative Shift
A notable feature of Parlatore's testimony was what he "did not say." He did not describe Bitcoin as a reserve asset, payment system, or speculative tool, but consistently positioned it as a computer science system with direct military relevance.
According to Bitcoin Magazine, previous public statements from the U.S. military regarding cryptocurrency had mostly focused on combating illicit finance and sanctions enforcement. Parlatore's testimony marks a significant shift in this narrative framework, as the protocol layer of Bitcoin was qualitatively described for the first time by an active combatant commander as a technology with national security value.
Sam Lyman, Director of Research at the Bitcoin Policy Institute, stated in a release that Parlatore's testimony confirmed that Bitcoin is "an undeniable geopolitical strategic asset."
As of early 2026, there are approximately 15,000 to 20,000 publicly reachable full nodes on the Bitcoin network, though the actual number may be higher as many nodes run behind firewalls. Nodes from INDOPACOM have joined this number, meaning that the U.S. military is no longer a mere observer of the Bitcoin network but a direct participant.
