Last month, Admiral Samuel Paparo of U.S. Indo-Pacific Command told reporters that Bitcoin is a valuable computer science tool for power projection. He also disclosed that INDOPACOM is running a Bitcoin node in experiments. The timing is notable: shortly before Paparo spoke, the Islamic Republic of Iran demanded payment in Bitcoin for safe passage across the Strait of Hormuz.
Iran's Bitcoin demand
Iran's request for Bitcoin in exchange for access through the strategic waterway wasn't just a diplomatic flex. It signaled that adversaries see digital assets as a way to bypass the dollar-based financial system. Paparo's comments, made public on April 21–22, suggest the U.S. military is watching — and experimenting.
The theory behind the experiments
Jason Lowery, an MIT Fellow and Special Assistant to the Commander of INDOPACOM, wrote a book called Softwar: A Novel Theory on Power Projection. He argues that Bitcoin can be used as a tool for power projection in cyberspace. The Department of Defense defines power projection as the ability to apply national elements — political, economic, informational, military — to respond to crises, deter threats, and maintain stability. Lowery's work connects Bitcoin to that mission.
At his superiors' request, the book was pulled from distribution. That move led to speculation that its contents may be sensitive to U.S. military interests.
Bitcoin as a 'macrochip'
Lowery compares the global electric grid to a macrochip. In his model, Bitcoin mines act as logic gates that convert energy into scarce digital assets. That binds cybersecurity to physical energy expenditure — a twist on traditional network defense.
He also points to Bitcoin's multisignature wallets as a form of deterrence. Multisig requires multiple private keys to transfer funds, making attacks costly and geographically difficult. That stands in contrast to traditional finance, where banks can freeze or confiscate assets under political pressure.
INDOPACOM's node experiments are ongoing. The Pentagon hasn't said whether they'll scale up or move beyond testing. But the fact that a four-star admiral is talking publicly about Bitcoin's strategic use — and that his special assistant's book was yanked — makes it clear this isn't just academic curiosity.
