Author: Thursday, Shenchao TechFlow
Shenchao Summary: This week, Admiral Paparo, Commander of the U.S. Indo-Pacific Command, testified consecutively before the Senate and House Armed Services Committees, confirming that the command is operating a Bitcoin network node and conducting cybersecurity "live-fire exercises."
He characterized Bitcoin as a "computer science tool" and a "means of power projection," rather than a financial asset. This marks the first time the U.S. military's Combatant Command has publicly acknowledged direct involvement in Bitcoin's peer-to-peer network, signaling a shift in the Pentagon's narrative on Bitcoin from "combating illicit finance" to "defense-grade technological asset."
The U.S. military's classification of Bitcoin is undergoing a fundamental shift.
According to Bitcoin Magazine on April 22, Admiral Samuel Paparo, Commander of the U.S. Indo-Pacific Command (INDOPACOM), testified this week before the congressional Armed Services Committees of both the House and Senate, confirming that the command is currently operating a Bitcoin network full node and conducting a series of military cybersecurity tests based on the Bitcoin protocol. Admiral Paparo is the highest-ranking officer of the largest of the U.S. six unified combatant commands, overseeing approximately 380,000 military personnel and responsible for the Indo-Pacific theater, which covers half of the Earth’s surface.
Paparo explicitly classified Bitcoin as a "computer science tool" and a "means of power projection," rather than a speculative financial asset, during his testimony. This marked the first time a senior U.S. military officer publicly characterized Bitcoin in this manner before Congress, and the first known instance of a U.S. military combatant command confirming direct participation in Bitcoin’s peer-to-peer network.
Senate testimony: Bitcoin is a "tool of state power"
On April 21, Paparo responded to Senator Tommy Tuberville (Republican, Alabama) regarding the strategic value of Bitcoin during the Senate Armed Services Committee's 2027 Fiscal Year Defense Authorization Review hearing.
Thurberville asked directly: Can America’s leadership in Bitcoin enhance deterrence against China? Paparone did not avoid the question; he told the committee that INDOPACOM’s research focuses on the underlying computer science architecture of Bitcoin, including the integration of three key technological components: cryptography, blockchain, and proof of work.
Paparo said: "Bitcoin is real. It is a peer-to-peer, trustless system for transferring value. Anything that supports the full range of national power tools of the United States of America is beneficial." He also added, "Beyond its economic properties, Bitcoin has significant computer science applications in the field of cybersecurity."
Papadopoulos further elaborated on the military potential of the proof-of-work protocol, noting that Bitcoin’s proof-of-work mechanism "imposes costs far beyond mere algorithmic network defense" and could be applied to both offensive and defensive cyber operations.
In other words, the Pentagon is not interested in Bitcoin's price movements, but rather in its architecture as a computer security system that imposes physical costs on attackers.
House hearing confirms: "We have a node on the Bitcoin network."
On April 22, Paparo provided further details during additional questioning by Representative Lance Gooden (Republican, Texas) on the House Armed Services Committee.
According to the official press release and transcript of the hearing released by the Gouden Office that day, Paparo explicitly stated: “We are currently in the experimental phase. We have a node on the Bitcoin network. We are not mining. We are using it to monitor and conduct a series of operational tests to leverage the Bitcoin protocol to secure network safety.”
Gutten also cited data from the Bitcoin Policy Institute during the hearing, noting that China currently holds approximately 194,000 bitcoins, while the United States holds about 328,000. He pressed Paparo:
In the digital competition era, should the United States maintain its leadership in Bitcoin holdings, as it does with strategic resources like gold and oil?
Paparozzi responded that people are already using Bitcoin to safeguard their digital assets, which is precisely the function enabled by the combination of proof-of-work, blockchain, and cryptography. He also expressed support for the GENIUS Act’s positive role in maintaining the U.S. dollar’s global dominance but did not comment publicly on a “strategic Bitcoin reserve,” stating he prefers to discuss such matters in classified settings.
Pentagon narrative shift
A notable feature of Paparo’s testimony is what he did not say. He did not describe Bitcoin as a reserve asset, a payment system, or a speculative tool; instead, he consistently framed it as a computer science system with direct military relevance.
According to Bitcoin Magazine, previous public statements by the U.S. military regarding cryptocurrency had almost entirely focused on combating illicit finance and sanctions enforcement. Paparo’s testimony marks a significant shift in this narrative framework, as the protocol-level architecture of Bitcoin was, for the first time, characterized by a sitting combatant command commander as a technology of national security value.
Sam Lyman, Research Director at the Bitcoin Policy Institute, stated in a statement that Paparo’s testimony confirmed that Bitcoin “is an undeniable geopolitical asset.”
As of early 2026, there are approximately 15,000 to 20,000 publicly reachable full nodes on the Bitcoin network; the actual number may be higher, as many nodes operate behind firewalls. The addition of INDOPACOM’s node means the U.S. military is no longer merely an observer of the Bitcoin network but a direct participant.