The U.S. military is actively running its own Bitcoin node, according to Admiral Samuel Paparo, Commander of the U.S. Indo-Pacific Command (INDOPACOM). Testifying before the Senate Armed Services Committee and a House hearing, Admiral Paparo described Bitcoin not merely as a digital asset, but as a powerful computer science tool with direct implications for national security, cybersecurity, and power projection.
During the hearings held to discuss military posture in the Indo-Pacific, Paparo stated that INDOPACOM is operating a Bitcoin node for monitoring and operational testing. He clarified that the military is not mining Bitcoin. Instead, the node is part of an experimental phase focused on securing networks and protecting systems using the Bitcoin protocol's underlying technology—specifically its cryptography, blockchain, and reusable proof-of-work design.
Iran's Move Adds Geopolitical Weight
The Admiral's testimony coincided with Iran's announcement that it would accept Bitcoin, along with the Chinese yuan and dollar-pegged stablecoins, as payment for oil shipping tolls through the Strait of Hormuz. Approximately 20% of the world's oil supply passes through this strategic waterway. Analysts from the Bitcoin Policy Institute (BPI) noted that while Iran may prefer stablecoins for some transactions, Bitcoin offers a critical advantage: its transactions cannot be frozen or blocked by any single entity. Stablecoins, by contrast, can be frozen by their issuers at the contract level. Sam Lyman, head of research at the BPI, called this “one of the most significant situations where Bitcoin is very clearly a strategic asset.”
Mixed Reactions from the Crypto Community
The Bitcoin community's response to the Admiral's testimony was divided. While some saw the government's engagement with the technology as a positive step, others were skeptical. Crypto educator Matthew Kratter and journalist Lola Leetz criticized the officials for appearing to lack a deep understanding of the technology, with Kratter stating they were “saying absolutely nothing” and Leetz calling the testimony “babbling.”
Data from the BPI shows that transactions linked to the Iranian Revolutionary Guard Corps account for nearly half of all crypto market volume inside Iran, underscoring the real-world, high-stakes geopolitical use of the network.
Bitcoin vs. Stablecoin Policy
Admiral Paparo drew a clear distinction between Bitcoin's technical role and the broader U.S. policy on digital assets. He expressed support for the GENIUS Act—a legal framework for dollar-backed stablecoins signed into law by President Donald Trump in July 2025—as a means to maintain U.S. dollar dominance in the digital finance era. His testimony, therefore, split Bitcoin as a cybersecurity protocol from stablecoin regulation as a tool for economic statecraft.
