CIA Deputy Director Hints Agency Uses Bitcoin, Crypto As 'Tools' Against China, Other Adversaries
He also said Bitcoin and crypto have become 'another area of technological competition between the US and China
He added that Bitcoin and other crypto are 'another tool in the toolbox' of the CIA
Bitcoin and cryptocurrency have grown over the last decade from a niche segment into a global medium for various financial transactions and in what could be the most telling use case yet regarding the United States' embrace of crypto, a Central Intelligence Agency (CIA) top official hinted that the foreign intelligence agency also uses BTC and other crypto.
CIA Deputy Director Michael Ellis said in a Thursday podcast with Professional Capital Management CEO Anthony Pompliano that the CIA uses Bitcoin and crypto as a "tool." Bitcoin's Transition from Criminal Use to Intelligence Tool
In the podcast, Pompliano asked Ellis how the CIA views Bitcoin, given how American law enforcement appears to be "excited" about potentially using the world's largest crypto asset to track criminal activity.
Ellis said the CIA sees the development "just as law enforcement" does, further explaining that people who first encountered BTC may have thought that the digital asset is a tool for anonymity.
However, he noted that instead of being anonymous, Bitcoin "is pseudonymous," so it can still be tracked. He revealed that the CIA has worked with law enforcement to track "illicit crypto payments by bad actors." Ellis Says Bitcoin is a 'Competition' Field
Ellis, who previously served as a senior national security official, is "another area of technological competition" where the U.S. obviously doesn't want to become a laggard in.
He specifically noted that the White House under President Donald Trump needs to make sure the U.S. doesn't lag behind China and other adversaries in the technology field.
For Ellis, cryptocurrency has "a lot of potential" to be utilized by law enforcement and intelligence teams to "track what our adversaries are doing and disrupt it."
Pompliano agreed that Bitcoin and crypto have been criticized as tools for "bad people," but he said these emerging assets can also be tools for "good people."
Ellis agreed, noting that the CIA uses technology as a tool, and that "Bitcoin and other cryptocurrencies are another tool in the toolbox" that the agency can deploy to disrupt its use by U.S. adversaries. Bitcoin Isn't Going Anywhere: Ellis
While some politicians appear to still be wary of Bitcoin and crypto, citing risks around security, data privacy, national security, and more, Ellis believes recent trends around adoption solidify Bitcoin's place in the financial realm.
"Bitcoin is here to stay. Cryptocurrency is here to stay. As you know, more and more institutions are adopting it, and I think that's a great trend," he said.
His comments are backed by current developments not just in the United States but also around the world, including Panama City's recent move to push Panama's largest city toward leading the Bitcoin and Ethereum race.
In the U.S., President Trump has also ordered the establishment of a strategic BTC reserve and a digital assets stockpile that could further encourage adoption across the country.
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