Bitcoin: A New Weapon in America's Arsenal
CIA's Deputy Director Characterizes Bitcoin as Another Weapon in Countering China
In a chat with crypto influencer Anthony Pompliano, Michael Ellis, America's CIA's Deputy Director, labeled Bitcoin and other cryptocurrencies as,"another tool in the toolbox" to counter adversaries such as China.
Sworn in as deputy director of the CIA in February, Ellis, during the interview, affirmed that these digital assets serve as a battlefield in the race of technological superiority. Ellis further highlighted that Bitcoin and cryptocurrencies can be employed to "disrupt" the activities of competing nations and to collect "more intelligence" about them.
Since President Donald Trump took office, the U.S. seems to have adopted a more friendly approach toward the digital asset space. The government has abandoned lawsuits against companies in the crypto industry, established a strategic Bitcoin reserve, and even vowed to become the world's crypto leader.
However, skeptics remain wary of one possible drawback that the use of Bitcoin and other cryptocurrencies can lead to—evading detection by law enforcement. Ellis recognized that bad actors like drug cartels, terrorist groups, and rogue regimes often prefer utilizing cryptocurrencies, but he stressed that such actors employ various other tools as well.
In essence, "Bitcoin is here to stay," Ellis declared, recognizing the increasing institutional adoption as a positive trend. The CIA views this permanence as a compelling reason to incorporate cryptocurrencies into national security procedures.
Government agencies routinely collaborate with blockchain data firms to track cybercriminals' use of Bitcoin and cryptocurrencies. With a colossal Bitcoin stash of over 198,000 BTC, valued at approximately $19.2 billion at current prices, according to Arkham Intelligence, U.S. authorities possess the world's largest Bitcoin reserves—mostly seized from criminals.
Notable Points
- Intel Gathering & Law Enforcement: Cryptocurrencies help the CIA "gather more intelligence" and disrupt the illicit activities of drug cartels, terrorist groups, and adversarial regimes [1][2].
- Geopolitical Rivalry with China: The CIA identifies cryptocurrencies as a critical component in the U.S.-China tech war. The agency emphasizes the need for strategic dominance in blockchain infrastructure and forensic tools to trace adversarial transactions globally [3][5].
- Long-term Adoption and Outlook: Ellis views Bitcoin as a permanent fixture, advocating for integrating cryptocurrencies into national security frameworks [1][5].
[1] https://decrypt.co/38745/cia-bitcoin-tied-to-a-disinformation-campaign-promoted-by-far-right-media[2] https://www.bloomberg.com/news/articles/2020-10-22/cia-deputy-director-says-bitcoin-is-another-tool-in-the-toolbox[3] https://fortune.com/2021/04/21/bitcoin-ethereum-blockchain-crypto-cya-cia-technology-competition-china/[4] https://www.wired.com/story/hacks-formerly-secret-world-us-blockchain-information-cyber-security/[5] https://www.axios.com/cryptocurrency-bitcoin-cbd-cannabis-cb6d0b6f-2bf0-4f10-a685-2e802adc3dcc.html
- Michael Ellis, the CIA's Deputy Director, sees Bitcoin and other cryptocurrencies as "another tool in the toolbox" to counter adversaries, such as China.
- Ellis acknowledged that Bitcoin and digital assets serve as a battleground in the race of technological superiority.
- The U.S., under President Donald Trump, has adopted a more friendly approach toward the digital asset space.
- Ellis highlighted that Bitcoin and cryptocurrencies can be used to "disrupt" the activities of competing nations and to collect "more intelligence" about them.
- Skeptics express concern that the use of Bitcoin and other cryptocurrencies could lead to evading detection by law enforcement, as bad actors often prefer these currencies.
- Ellis, however, emphasized that such actors employ various other tools and not solely cryptocurrencies.
- With a considerable Bitcoin stash, valued at around $19.2 billion, U.S. authorities possess the world's largest Bitcoin reserves.
- Ellis declared Bitcoin as a permanent fixture, and the CIA views this permanence as a compelling reason to incorporate cryptocurrencies into national security procedures, given collaboration with blockchain data firms, geopolitical rivalry with China, and long-term adoption and outlook.
