The US Senate Committee on Armed Services has urged the Department of Defense (DOD) to explore blockchain technology for supply chain management and other national security applications. This directive was issued to Secretary of Defense, Retired General Lloyd Austin, as part of the fiscal year 2025 National Defense Authorization Act (NDAA) report released on July 9.
Key Recommendations
The Senate Committee emphasized blockchain technology’s potential to enhance the cryptographic integrity of defense supply chains, improve data integrity, and reduce the risk of data manipulation or corruption by near-peer competitors. They believe blockchain can create secure, transparent, accountable, and auditable data related to supply chains, which is crucial for national security.
Specific Directives
The committee directed Secretary Austin to provide a detailed briefing by April 1, 2025, including six key findings:
- Pilot Programs and Research: A plan for pilot programs or research and development efforts to explore blockchain technology in national security applications, such as supply chain management, cybersecurity for critical infrastructure, and procurement auditability.
- Benefits and Risks: Identification of the benefits and risks associated with using blockchain in supply chain tracking and management.
- Current State Analysis: Analysis of the current state of blockchain adoption in the supply chain industry and in foreign countries like China and Russia.
- Feasibility and Cost Estimates: Evaluation of the feasibility and cost estimates for implementing blockchain technology within the DOD.
Growing Interest in Blockchain
The Senate committee’s interest in blockchain technology reflects a broader trend of exploring advanced technologies to strengthen national security and economic competitiveness. The potential applications of blockchain extend beyond supply chain management to include enhancing cybersecurity for critical infrastructure and improving the auditability of procurement processes.
Political Advocacy for Cryptocurrencies
This interest in blockchain aligns with growing political support for cryptocurrency adoption. For instance, a July 8 update to Republican Party presidential candidate Donald Trump’s campaign website revealed that the Republican National Committee has passed a draft policy platform advocating for cryptocurrencies and Bitcoin mining. The platform asserts:
“We will defend the right to mine Bitcoin, and ensure every American has the right to self-custody of their Digital Assets, and transact free from Government Surveillance and Control.”
