The US Central Intelligence Agency is progressively integrating Bitcoin (BTC) into its operations, with engagement in cryptocurrency considered a matter of national security, Michael Ellis, the agency’s deputy director, informed podcast host Anthony Pompliano.
During his appearance on the market analyst and investor’s show, Ellis mentioned to Pompliano that the intelligence agency collaborates with law enforcement to monitor BTC, marking it as a point of data gathering in counter-intelligence initiatives. Ellis added:
“Bitcoin is here to remain — cryptocurrency is here to persist. As you’re aware, more and more institutions are embracing it, and I see that as a positive trend. One that this administration has clearly been proactive about.”
“It’s another domain of rivalry where we must ensure the United States is strategically located against China and other challengers,” Ellis remarked.
While Ellis’s statements indicate Bitcoin maturing as a commodity, they also highlight the growing involvement of governments and organizations in Bitcoin and cryptocurrencies. This heightened engagement stands in contrast to the libertarian and cypherpunk ideals that were initially integral to crypto.
Related: Geopolitical tensions drive central bank shift towards gold, crypto — BlackRock executive
Bitcoin: from cypherpunk experiment to governmental reserve asset
US President Donald Trump enacted an executive order creating a Bitcoin Strategic Reserve on March 7, eliciting mixed reactions from the Bitcoin community.
Bitcoin Magazine CEO David Bailey applauded the initiative, while Venice AI founder and BTC supporter Erik Vorhees cautioned against government ownership of any Bitcoin, but noted that if the US government were to endorse any crypto reserve, it should solely be Bitcoin.
Concerns that cryptocurrencies have strayed from their cypherpunk origins predate the current market cycle along with any strategic reserve regulations or comprehensive frameworks for digital assets.
In March 2020, Therese Chambers, the former director of retail and regulatory investigations at the United Kingdom’s Financial Conduct Authority (FCA), asserted that cryptocurrencies have become increasingly financialized and institutionalized.
Chambers added that digital assets were operating far more like conventional financial instruments than the privacy-centric tools they were originally promoted as.
