That same day, at a separate hearing, the Fed chair nominee \u2014 who holds Bitcoin as a personal asset \u2014 appeared before senators and pledged to serve.<\/p>\n
The military and the central bank don\u2019t coordinate testimony. Yet both sent the same directional signal within hours.<\/p>\n
Commander, is Bitcoin a national\u2011security asset?<\/em><\/p>\n Adm. Samuel Paparo, commander of U.S. Indo\u2011Pacific Command, testified last week before the Senate Armed Services Committee. He oversees the Indo\u2011Pacific theater and occupies a central role in U.S. military strategy. He put Bitcoin on the public record.<\/p>\n Bitcoin is valuable computer\u2011science technology as a tool of power projection. It has important applications in cybersecurity.<\/em><\/p>\n He went further, disclosing that INDOPACOM is running Bitcoin nodes to test military network security. This is not theoretical \u2014 it\u2019s operational.<\/p>\n This is the first time an active U.S. combat commander has publicly described Bitcoin as a national\u2011security asset in congressional testimony.<\/p>\n Context matters. Think tanks linked to China\u2019s central bank are reportedly circulating internal reports treating Bitcoin as a reserve asset. Both Washington and Beijing appear to be assessing Bitcoin\u2019s strategic value. Paparo\u2019s comments read less like a personal aside and more like a sign that Bitcoin already occupies a role inside U.S. national\u2011security calculations.<\/p>\n Portfolio of the Fed chair nominee<\/strong><\/p>\n That same day, the Senate Banking Committee held a confirmation hearing for Kevin Warsh<\/span>, President Trump\u2019s nominee for Federal Reserve chair.<\/p>\n Warsh told senators he would defend the Fed\u2019s independence while also signaling a regime change at the central bank: a smaller balance sheet, fewer policy meetings and a new inflation framework. Taken together, he sketched a fundamental redesign of conventional monetary policy.<\/p>\n Warsh also brings an unprecedented personal background: he is the first Fed chair nominee known to hold a meaningful personal investment in Bitcoin. He has publicly compared Bitcoin to gold as a durable store of value.<\/p>\n The Fed has steadily eroded the dollar\u2019s purchasing power over the past century. If a Fed chair who grasps Bitcoin\u2019s monetary implications assumes the post, the cryptocurrency could become more deeply integrated into the U.S. financial system. That would change the playing field.<\/p>\n The downside of decentralization: two incidents in one week<\/strong><\/p>\n The same week a senior commander identified Bitcoin as a national\u2011security asset, projects built on Ethereum that tout decentralization exposed a different reality.<\/p>\n The Arbitrum freeze<\/strong><\/em><\/p>\n Arbitrum\u2019s Security Council carried out an emergency on\u2011chain freeze tied to the KelpDAO bridge hack, locking 30,766 ETH \u2014 roughly 71 billion KRW (approximately $53.3 million) \u2014 at the request of law enforcement. A small group of insiders used a multisignature arrangement to control user funds.<\/p>\n The exploit connected to the incident amounted to about $292 million, and it helped trigger a $13.2 billion decline in DeFi\u2019s total value locked (TVL).<\/p>\n Technically, dozens of insiders signing a multisig to move protocol\u2011level funds mirrors the operational model used by banks. Bitcoin has no admin keys, no foundation with intervention authority, and no committee that can freeze a specific UTXO (a unit of Bitcoin balance). That is Bitcoin\u2019s defining difference.<\/p>\n Justin Sun and the lawsuit against the Trump\u2011linked crypto venture<\/strong><\/em><\/p>\n Tron founder Justin Sun sued World Liberty Financial (WLFI) \u2014 a crypto venture tied to the Trump family \u2014 in U.S. federal court in California. Sun alleges WLFI froze his WLFI tokens, once valued at more than $1 billion, after he declined to make additional investments worth hundreds of millions of dollars. He claims WLFI quietly amended its rules to grant itself blacklist authority over token transfers. WLFI says the suit has no merit.<\/p>\n Whatever the legal outcome, the structural lesson mirrors Arbitrum\u2019s: in crypto systems that include admin keys, foundations or multisigs, those authorities eventually get exercised \u2014 against strangers, former partners and even presidential associates.<\/p>\n Bitcoin adoption spreads worldwide<\/strong><\/p>\n The same week saw several moves that underscore global Bitcoin adoption.<\/p>\n Russia\u2019s State Duma passed a bill classifying Bitcoin as legal property by a 327\u201313 vote. State\u2011owned Sberbank said it will offer Bitcoin trading to its 110 million retail customers.<\/p>\n Uzbekistan created the Besqala Mining Valley by presidential decree, granting tax exemptions to licensed Bitcoin miners through 2035 in exchange for a monthly 1% fee.<\/p>\n In Japan, a 2026 survey by Nomura and Laser Digital found 79% of institutional investors plan to allocate to Bitcoin within three years.<\/p>\n In the U.K., three Bitcoin exchange\u2011traded notes (ETNs) became eligible for the Innovative Finance ISA, reopening a tax\u2011advantaged route for retail investors to gain Bitcoin exposure.<\/p>\n Global financial\u2011infrastructure firm Broadridge launched a Bitcoin platform for a Canadian asset manager on top of infrastructure that processes about $8 trillion per month.<\/p>\n Can AI make money obsolete?<\/strong><\/p>\n The industry also debated a provocative claim this week: Elon Musk argued that AI and robotics could boost productivity so dramatically that governments could pay a universal high income without triggering inflation \u2014 and might even depress prices.<\/p>\n Economist Peter C. Earle countered that the argument, while intuitive, is structurally flawed.<\/p>\n Musk\u2019s logic is simple: view inflation as dollars \u00f7 goods. If the denominator (goods) grows faster than the numerator (dollars), prices fall. But prices are not set by aggregate totals alone; relative prices form across sectors and decisions at the intersection of supply, demand and expectations. Those relative\u2011price signals coordinate what gets produced, when and how. Distorting them undermines the production structure.<\/p>\n A deeper problem is distribution. Newly issued money never reaches the whole economy uniformly or simultaneously. Money flows through particular channels \u2014 government transfers, banks and asset markets \u2014 and those closest to the faucet benefit first and most. Those farthest away effectively bear the cost. That is the Cantillon Effect, a concept Richard Cantillon formalized in the 1730s. No level of AI\u2011driven productivity eliminates it.<\/p>\n Bitcoin caps supply at 21 million coins. No one can mint new Bitcoin and distribute it through political networks. In a Bitcoin\u2011based economy, AI\u2011driven productivity gains would translate directly into purchasing power. Prices would decline, and those who postpone consumption would be rewarded.<\/p>\n If AI does deliver a dramatic leap in productive capacity, the only reliable way to ensure ordinary people share that prosperity is to anchor the economy to a currency no one can print.<\/p>\n Military strategy, central\u2011bank policy, DeFi failures and monetary theory \u2014 these threads are converging in the same direction.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" U.S. military and central bank leaders endorse Bitcoin, highlighting its role as a tool for power projection beyond borders.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_thumbnail_url":"https:\/\/cdn-union.tenbizt.com\/contents\/crawler-dev\/thumbnail\/2026\/04\/CP-2025-0041\/thumb-779e1477-f835-469a-8e96-219c48c26500.jpg","footnotes":""},"categories":[278104],"tags":[],"class_list":["post-258475","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-military"],"yoast_head":"\n![\"data-height=undefined\"](\"https:\/\/cdn-union.tenbizt.com\/contents\/crawler-dev\/image\/2026\/04\/CP-2025-0041\/image-1417f118-286e-4283-9878-ab14fc090f7e.jpeg\")
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