Could China ‘militarise’ cryptocurrencies to sanction-proof its economy?
Communist Party newspaper Study Times argues that digital assets are the new toolbox for wartime financial strategies
Digital currency is emerging as a powerful, disruptive tool in global geopolitics, fundamentally reshaping the financial battlefield in times of conflict, according to a commentary in a key Communist Party publication.
Digital currencies are issued by central banks and pegged to real-world assets such as fiat currencies or commodities as well as cryptocurrencies issued by the private sector, such as bitcoin, which is powered by blockchain technology.
“In multiple global geopolitical conflicts in recent years, digital currencies have begun to enter the realm of military applications, providing fast, secure and anonymous transaction features that lay the foundation for the militarisation of digital assets,” the article said.
The article’s author, Xue Zichen, said it was “worth noting” that the 2025 US National Defence Authorisation Act authorised a Pentagon initiative known as the Defence Blockchain Internal Testing Programme, which meant that digital currencies could become a “significant strategic tool for future financial defence”.
While Xue’s title was not disclosed, the author seemed to be an active contributor to state media, including party mouthpiece People’s Daily.