The US military has confirmed that it is using a Bitcoin node in cybersecurity testing, adding a new federal use case for blockchain technology beyond payments and trading. The disclosure came during a House Armed Services Committee hearing, where US Indo-Pacific Commander Admiral Samuel Paparo said the command is monitoring the network and running operational tests tied to defense systems. He said the effort does not involve mining and is focused on security research.
Admiral Samuel Paparo disclosed an exchange with Congressman Lance Gooden of Texas. Gooden asked whether the United States should keep an advantage in Bitcoin as it does with other strategic resources. The discussion then turned to how the protocol could serve national security goals.
Paparo told lawmakers that his interest in Bitcoin is rooted in its technical design. He described it as a system built on ‘cryptography, a blockchain, and reusable proof of work’ and said those elements offer value in protecting networks. He also said the protocol is ‘here to stay’ from a computer science standpoint.
He later gave the most direct description of the military’s current activity. Paparo said, "Presently, we have a node on the Bitcoin network right now. We’re not mining Bitcoin. We’re using it to monitor, and we’re doing a number of operational tests to secure and protect networks using the Bitcoin protocol." This statement marked a rare public confirmation that a US combatant command is actively working with the network.
The exchange showed that the military’s interest is tied to Bitcoin’s underlying system rather than its market role. Moreover, the testimony placed protocol-level research inside a broader defense conversation that has often focused on digital assets as financial instruments.
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Paparo said the command is studying Bitcoin as a computer science tool. His remarks focused on how proof-of-work, blockchain record-keeping, and cryptographic design may support stronger cyber defenses. In that context, he suggested the protocol could help raise costs for hostile actors targeting protected systems.
He also said Bitcoin already helps users protect digital property through a structure that combines accountability and security. Therefore, his testimony presented the network as a model with possible applications in military cybersecurity work rather than as a reserve asset or payment rail.
When lawmakers asked about the US readiness to respond to China’s direction on digital assets, Paparo tied the issue to broader policy goals. He said, "Our recent act with the GENIUS Act is a great step forward that moves us in that direction." He also said he supports "anything that maintains our own dollar dominance worldwide."
Those comments marked a shift from earlier warnings he made about cryptocurrency being used in illicit finance. This time, however, he centered his remarks on technical functions and defense-related research. Furthermore, the hearing suggested that federal interest in blockchain is expanding into more direct operational study.
Gooden used the hearing to argue for a broader US approach to digital assets. He cited research estimating that China holds about 194,000 BTC while the United States holds about 328,000 BTC. He asked whether maintaining that lead could support the US strategy over time.
Gooden has also taken several public steps in support of crypto policy. He has backed broader use cases for digital assets, supported stablecoin-related measures, and urged the General Services Administration to consider cryptocurrency ATMs in federal buildings. In addition, he is working on what he described as a "crypto-forward" 2027 National Defense Authorization Act.
External threats also remain part of the background to this research. North Korea-linked crypto activity has continued to draw attention from US officials and cybersecurity analysts. Industry reports also estimated that the Lazarus Group took about $600 million from crypto exploits in 2026.