US Military Backs Strategic Bitcoin Reserve, Says Senator Lummis Amid Rising Tensions with China

In a striking development that could reshape how digital assets are viewed on a geopolitical level, US Senator Cynthia Lummis has stated that segments of the United States military are supporting the idea of a strategic Bitcoin reserve to defend against growing economic threats, particularly from China.

Speaking in an interview with Bloomberg TV on Wednesday (4 June), Lummis, the Republican Senator from Wyoming and a long-time cryptocurrency advocate, responded to criticism from JPMorgan CEO Jamie Dimon, who has previously voiced scepticism about Bitcoin’s role in the financial system.

“I can tell you, even some top military leaders in the US disagree with him,” Lummis said. “There are generals, particularly in Southeast Asia, who believe that having a strategic Bitcoin reserve is crucial. We are in an economic war with China, and we must also be prepared for a potential war involving bullets and weapons.”

Lummis’s comments shed light on a growing belief within parts of the US defence and intelligence community that Bitcoin could serve as a financial safeguard — or even a form of sovereign digital insurance — in the event of escalating tensions or global instability.

Strategic Bitcoin Reserve: A Modern Defence Asset?

While the idea of a government holding Bitcoin as part of its reserves has been floated before, it’s rare to hear it being tied directly to national security from such high-level officials. Lummis’s remarks suggest that Bitcoin is being evaluated not just as an asset, but as a strategic tool for maintaining economic autonomy and resilience in times of crisis.

Analysts note that China’s aggressive development of its digital yuan, along with its repeated crackdowns on decentralised cryptocurrencies, has further widened the ideological and financial divide between the two global powers.

“If the US fails to keep pace with digital asset integration, particularly at the state level, it risks falling behind not just economically, but strategically,” noted financial analyst Sarah Miles of Brisbane-based fintech consultancy ChainSight.

A Push for Broader Crypto Integration?

Lummis has been one of the most vocal proponents of pro-crypto legislation in the US Congress. She is also co-sponsoring the Lummis-Gillibrand Responsible Financial Innovation Act, which seeks to provide clear regulatory frameworks for crypto assets in the United States.

Her advocacy for a Bitcoin reserve reflects her broader belief that blockchain-based technologies could play a central role in ensuring both financial stability and strategic preparedness for the US in the coming decades.

The idea of a government-backed crypto reserve may still be controversial, but with rising geopolitical tensions and increasing global interest in decentralised finance, it may not remain speculative for much longer.

As the crypto landscape evolves, the intersection between digital currencies and global security is quickly becoming a topic of serious policy discussion, not just among financiers but also within military and diplomatic circles.

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