US Generals Quietly Back Bitcoin Reserve in China Standoff

U.S. Senator Cynthia Lummis has revealed that certain divisions of the U.S. military support the creation of a national Bitcoin reserve. Lummis cited input from generals stationed in Southeast Asia who view it as a potential safeguard amid growing economic tensions with China.

“There are generals, especially in Southeast Asia, who believe it’s important to have a strategic Bitcoin stockpile because we’re doing an economic war with China and we have to prepare for a guns and bullets war. But we need both,” Lummis stated in an interview with Bloomberg. “All we need to do is look to the leadership of the current US military to find support for a strategic Bitcoin reserve,” she added. 

Senator Lummis made her remarks in the context of ongoing tensions between the U.S. and China, a relationship that was heavily marked by trade conflicts during the Trump administration. While tariffs were initially imposed on multiple U.S. trading partners, most were later lifted except for those targeting China. The two countries ultimately agreed on a temporary trade deal, which helped reduce some of the strain.

At the 2025 Bitcoin conference, Senator Lummis emphasized several legislative priorities, focusing on market structure reforms, stablecoin regulations, upcoming crypto tax policies, the idea of a national Bitcoin reserve, and the impact of Bitcoin mining.

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Senator Lummis argued that Bitcoin should play a role in the U.S. government’s long-term financial planning. Pointing to the nation’s $37 trillion debt, she suggested that gradually acquiring one million Bitcoins over 20 years could help ease this financial strain. She also proposed that underutilized government assets could be shifted into Bitcoin investments, eliminating the need for new debt.

“Bitcoin is such an important Global Strategic asset and it is not only important in the economy, but in our global defense because there are components to our defense,” Senator Lummis stated at the time. 

As the conversation around digital currencies gains momentum, industry experts and lawmakers are paying close attention to the potential impact of integrating Bitcoin into national financial planning.

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Such initiatives could not only transform how governments manage debt and assets but also redefine economic power dynamics on the global stage. The coming years will be crucial in determining how cryptocurrencies fit into broader economic and strategic policies.

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MICHAELA

Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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