US Military Advocates Bitcoin Reserve Amid China Tensions

US Senator Cynthia Lummis has revealed that certain divisions within the American military are advocating for the establishment of a national Bitcoin reserve. This strategic move is seen as a response to the escalating economic tensions between the United States and China. During an interview on June 3, Lummis highlighted that some US generals, particularly those stationed in Southeast Asia, are in favor of stockpiling Bitcoin as part of a broader geopolitical strategy.

Lummis emphasized that these military leaders view Bitcoin as a crucial asset in the ongoing economic conflict with China. She stated, “All we need to do is look to the leadership of the current US military to find support for a strategic Bitcoin reserve.” She further elaborated that these generals believe it is essential to have a strategic Bitcoin stockpile, not only to prepare for potential economic wars but also to be ready for any future military conflicts. This dual approach underscores the significance of Bitcoin in both economic and military strategies.

The senator's remarks come at a time when tensions between the United States and China have been heightened, particularly due to the trade wars initiated by the Trump administration. Initially, Trump's tariffs were applied broadly, but many were later suspended, except those targeting China. The two nations eventually reached a temporary trade deal, which helped to ease some of the tensions. However, the underlying economic rivalry remains a significant concern for both countries.

Trump has been vocal about his vision for the United States to become the "world capital of crypto" during his potential second term. He has expressed concerns that if the US does not take the lead in the crypto industry, China or another country will. This sentiment is echoed by other political figures, including US Vice President JD Vance, who emphasized the geopolitical importance of Bitcoin at the Bitcoin 2025 conference. Vance stressed that the US must maintain its leadership in the crypto industry to remain competitive in the evolving digital finance landscape.

China, on the other hand, has implemented a comprehensive ban on crypto activities since 2021. Despite this ban, China continues to invest in blockchain technology, particularly for projects like its central bank digital currency, the digital yuan. This dual approach by China—banning crypto activities while embracing blockchain technology—highlights the complex nature of the global crypto landscape.

Lummis' proposal for a national Bitcoin reserve is part of a broader effort to establish a comprehensive cryptocurrency policy in the United States. She has been a vocal advocate for the Bitcoin Act, which aims to create a national strategic Bitcoin reserve. This act, if passed, would provide a framework for the US to leverage Bitcoin as a strategic asset, further solidifying its position in the global crypto market. The support from military leadership adds weight to Lummis' proposal, underscoring the potential benefits of Bitcoin in both economic and military contexts.