U.S. Senator Cynthia Lummis has revealed growing military interest in creating a strategic Bitcoin reserve, citing feedback from senior generals stationed in Southeast Asia. In a June 3 interview with Bloomberg, Lummis described Bitcoin as a potential tool in the U.S. defense arsenal amid rising economic tensions with China.
“These military leaders recognize that we’re not only in an economic battle with China—we must be ready for any kind of warfare. And Bitcoin, in their eyes, is part of that preparation,” Lummis said.
Her remarks come as U.S.–China relations remain strained. Although a temporary trade truce followed the tariffs and economic friction of the Trump administration, both countries continue to frame economic dominance as a key front in their geopolitical rivalry.
Bitcoin as Economic Armor in a Digital Age
The idea of stockpiling Bitcoin as part of a national defense strategy reflects a dramatic shift in how digital assets are perceived by government and military leaders. Once viewed as speculative and risky, Bitcoin is now being considered by parts of the defense community as a hedge against macroeconomic threats—particularly those tied to centralized adversaries like China.
Lummis emphasized that the strategic rationale is clear: just as nations build reserves of gold or oil to withstand crises, Bitcoin’s fixed supply and decentralized nature make it a powerful asset in a world where digital threats are as real as physical ones.
Momentum Builds Toward a National Bitcoin Reserve
Earlier this year, Senator Lummis and Congressman Nick Begich introduced the BITCOIN Act, a bill proposing that the U.S. accumulate up to 1 million BTC over five years using seized digital assets. Modeled after traditional reserves like the Strategic Petroleum Reserve, the bill positions Bitcoin as a long-term safeguard for national resilience.
According to Lummis, support from military figures—especially those in forward-deployed positions—is strengthening the bill’s policy foundation. “This isn’t just a crypto idea,” she said. “It’s part of a broader conversation about how we maintain national security in the digital era.”
Trump and Vance Frame Crypto as a National Security Imperative
President Donald Trump has repeatedly stressed the importance of crypto leadership for U.S. national security. On the 2024 campaign trail, Trump warned that falling behind in the digital asset race would allow adversaries like China to dominate the space.
“If we don’t do it, China is going to pick it up and China’s going to have it, or somebody else, but most likely China,” he told Bloomberg.
Though China has banned most public crypto activity since 2021, it continues to invest heavily in state-driven blockchain infrastructure, including the digital yuan. This dual strategy—restricting decentralized crypto while promoting centralized alternatives—has alarmed U.S. policymakers.
Vice President JD Vance, speaking at the Bitcoin 2025 conference on May 28, reinforced this message. He described leadership in digital assets as “vital to maintaining global influence” and framed Bitcoin as a pillar of American competitiveness in the modern era.
Quick Facts
- U.S. generals in Southeast Asia have expressed support for a national Bitcoin reserve, according to Senator Cynthia Lummis.
- The BITCOIN Act, introduced by Lummis and Rep. Nick Begich, proposes accumulating 1 million BTC using seized digital assets over five years.
- Trump and VP JD Vance view crypto leadership as essential to U.S. national security amid growing competition with China.
- China’s crypto ban contrasts with its state-run blockchain programs, prompting fears of losing digital economic ground.
