Michael Ellis, the Deputy Director of the CIA, recently described Bitcoin and other cryptocurrencies as “another tool in the toolbox” for the United States in its strategic competition with China and other adversaries. Speaking on Anthony Pompliano’s podcast, Ellis underscored the importance of positioning the U.S. strongly in the technological landscape, where cryptocurrencies play a significant role. As of May 7, 2025, this statement reflects a growing recognition of Bitcoin’s potential in national security and intelligence operations.
Bitcoin as a Strategic Asset
Ellis’s comments highlight Bitcoin’s evolution from a medium often associated with illicit activities to a defensive tool for U.S. intelligence. He noted that the CIA is excited about how Bitcoin can be used to track and disrupt adversaries’ activities, such as those by drug cartels, terrorist groups, and hostile regimes. This dual use—both as a target for adversaries and a tool for the U.S.—underscores its strategic importance in the global tech race.
Technological Competition with China
The Deputy Director emphasized that cryptocurrencies are part of a broader technological competition where the U.S. must ensure it is well-positioned against China. He stated, “It’s another area of technological competition where we need to make sure the United States is very well positioned against China and other adversaries.” This reflects ongoing geopolitical tensions, with both nations vying for dominance in finance, technology, and security.
Bitcoin’s Staying Power and Adoption
Ellis affirmed that “Bitcoin is here to stay. Cryptocurrency is here to stay,” pointing to increasing institutional adoption as a “great trend.” This aligns with the administration’s forward-leaning approach to cryptocurrencies, suggesting a long-term commitment to leveraging digital assets for national interests. The CIA’s interest is further supported by reports of the U.S. government holding over 198,000 BTC, valued at $19.2 billion, mostly seized from criminals (Intel ARKM – U.S. Government Bitcoin Holdings).
Challenges and Opportunities
While Bitcoin offers opportunities for intelligence gathering and disruption, it also presents challenges. Adversaries may use cryptocurrencies for illicit purposes, making it a target as well as a tool. Ellis’s remarks suggest a balanced approach, recognizing both the risks and benefits in the context of national security.
