US Senator Cynthia Lummis has indicated that certain divisions within the American military are considering a national Bitcoin reserve to address economic threats, particularly from China. In a recent Bloomberg interview, Lummis noted that US generals, especially those stationed in Southeast Asia, advocate for storing Bitcoin as a geopolitical strategy. "All we need to do is look at military leadership to find support for a strategic Bitcoin reserve," she remarked, highlighting the belief that the US needs to prepare not only for potential military confrontations but also economic warfare.
The discussion comes amid ongoing tensions between the US and China, stemming from previous trade wars initiated during the Trump administration. Trump's tariffs affected several trading partners but primarily targeted China, which eventually led to negotiations for a temporary trade deal. In his 2024 campaign, Trump expressed the need for the US to become the "world capital of crypto," warning that without proactive measures, China might seize this opportunity.
Since a comprehensive ban on crypto activities in 2021, China has focused on using blockchain technology to support initiatives like its digital yuan. Meanwhile, US Vice President JD Vance has echoed the sentiment regarding Bitcoin's geopolitical significance, emphasizing the need for the US to lead in the crypto sector to remain competitive within the evolving digital finance environment.
The discussion comes amid ongoing tensions between the US and China, stemming from previous trade wars initiated during the Trump administration. Trump's tariffs affected several trading partners but primarily targeted China, which eventually led to negotiations for a temporary trade deal. In his 2024 campaign, Trump expressed the need for the US to become the "world capital of crypto," warning that without proactive measures, China might seize this opportunity.
Since a comprehensive ban on crypto activities in 2021, China has focused on using blockchain technology to support initiatives like its digital yuan. Meanwhile, US Vice President JD Vance has echoed the sentiment regarding Bitcoin's geopolitical significance, emphasizing the need for the US to lead in the crypto sector to remain competitive within the evolving digital finance environment.
