As the global landscape shifts under the Trump Administration, it is characterized by increasing political polarization, a focus on deregulation, and a growing interest in digital currencies and blockchain technologies. As a result, attention is now being paid to how these innovations could reshape the global economy and national security. The rising interest in digital currencies has not only captured the attention of tech enthusiasts, but also key figures in Trump’s cabinet who are championing these innovations. JD Vance, the Vice President of the United States, is an outspoken advocate for cryptocurrencies, holding over $100,000 in Bitcoin. His close ties to influential figures like Peter Thiel, an early proponent of blockchain, further highlight the significant political and economic backing these technologies now have. In a similar vein, Elon Musk was recently appointed head of the Department of Government Efficiency (DOGE). His involvement has only intensified following his 2018 promotion of the coin, Dogecoin, which helped inflate its value, reaping financial rewards for Musk. Meanwhile, President Trump, who had once dismissed cryptocurrencies as a fad, has notably shifted his stance claiming that he will bring the U.S. into a “golden age” of cryptocurrency.
In 2024, at a Bitcoin conference, he expressed a bold vision for the U.S. to become the global leader in cryptocurrency mining, positioning the country as a dominant force in the digital currency arena. Furthermore, he has even gone as far as to create his own cryptocurrency: World Liberty Financial (WLF). This enthusiasm to adopt blockchain within the administration signals that cryptocurrency could play a pivotal role in shaping not just the economy, but potentially national security in the years ahead.
Yet, as with any new technology, there are both positives and pitfalls to the rapid adoption of blockchain and cryptocurrency by the government. While Trump’s endorsement of these technologies pushes the world to reimagine their potential, it also opens the door to risks, particularly in the absence of clear regulatory oversight. The influence of lobbying efforts is a case in point. Take the Ohio Senate race, where the cryptocurrency industry poured $40 million into efforts to unseat Democratic Senator Sherrod Brown, who had supported regulations for cryptocurrency exchanges after incidents like the FTX scandal. The campaign succeeded, and the seat went to Republican Bernie Moreno, the owner of a blockchain company. This shift in political power demonstrates the potential for such lobbying efforts to reshape regulatory landscapes. Often, regulation follows the widespread implementation of technology, spurred by rhetoric rather than proactive policymaking. As the cryptocurrency industry grows, its influence on politics could have lasting implications for how these technologies are regulated, potentially leaving the door open to exploitation.
While there is a tendency to focus on the risks, it is important to also consider the significant benefits blockchain and cryptocurrency bring to the table. In the context of the Trump Administration’s embrace of these technologies, it is crucial to understand why they are being emphasized. Much of the push can be traced back to the financial opportunities these technologies present. But beyond financial gain, blockchain holds immense promise, especially in the realm of cybersecurity. Blockchain’s decentralization, coupled with its cryptographic security features, makes it highly resistant to hacking. Governments, industries, and organizations like NATO can use blockchain to defend against the increasingly sophisticated threats in today’s digital world.
Take the ongoing Russia-Ukraine conflict, for instance, where blockchain could significantly enhance supply chain security. Blockchain can provide a transparent, immutable ledger for every transaction, ensuring that goods and humanitarian aid reach the right places. In such a complex geopolitical situation, blockchain could track the movement of vital supplies, whether food, medical equipment, or military aid, while reducing the risk of fraud or diversion. Traditional systems like cloud storage and written records are still useful, but blockchain offers an extra layer of security, particularly against emerging threats like AI-driven cyberattacks. It ensures that critical information cannot be tampered with, offering a more secure and transparent way of managing supply chains in conflict zones.
NATO has already begun exploring blockchain’s potential for improving logistics and cybersecurity. For example, in 2017, the U.S. Air Force awarded a $30 million contract to blockchain-based startup SIMBA Chain to integrate blockchain into military supply chains, verifying the authenticity of military parts. Additionally, the European Union launched a project in 2021 aimed at using blockchain to track the sustainability of critical mineral supply chains. China has also recognized blockchain’s potential, creating a Blockchain Application subcommittee to implement the technology in their government as part of a long-term plan. Meanwhile, Russia has explored how blockchain could support military operations and enhance cybersecurity within its government. These efforts underscore how blockchain is increasingly seen as a vital tool for securing critical infrastructure and resources across the globe.
A NATO survey revealed that 47% of respondents believe their nations’ militaries could lead or undertake blockchain initiatives to improve logistics and security. Countries such as Albania, France, Germany, the U.K., and Poland are among those leading the charge, with nearly 69% of survey participants agreeing that NATO should play a central role in leveraging blockchain technology to enhance logistical capabilities. By incorporating cryptographic security measures with a decentralized structure, blockchain offers a robust solution to fortifying information security, making it far harder for data breaches to occur.
As blockchain continues to evolve, its applications across national security, logistics, and cybersecurity are poised to make a profound impact. While technology’s rapid rise poses challenges in terms of regulation and governance, its potential to protect sensitive data, streamline global supply chains, and enhance military operations cannot be ignored. Whether it is securing the flow of humanitarian aid during conflict or fortifying NATO’s logistical capabilities, blockchain is proving itself to be much more than just the backbone of cryptocurrency, it is a critical tool in the fight against the increasingly complex and interconnected threats facing nations today.
Photo: Crypto Cash (2017) via Pixel. Licensed under CCO.
Disclaimer: Any views or opinions expressed in articles are solely those of the authors and do not necessarily represent the views of the NATO Association of
Canada.
