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US Senate Directs Defense Secretary to Explore Blockchain for National Security and Supply Chain Management

The United States Senate Committee on Armed Services has instructed Secretary of Defense, Retired General Lloyd Austin, to test blockchain technology applications for supply chain management and other national security purposes within the Department of Defense (DOD).

On July 9, the committee released the report for the fiscal year 2025 National Defense Authorization Act (NDAA), detailing specific authorizations for the Army, Navy, Air Force, and Defense-wide programs.

The committee acknowledged blockchain’s potential to bolster US national defense supply chains and economic competitiveness:

“The committee notes that blockchain technology has the potential to enhance the cryptographic integrity of the defense supply chain, improve data integrity, and reduce the risk of the manipulation or corruption of certain types of data by near-peer competitors.”

The Senate committee urged the DOD to explore blockchain use cases to achieve national security goals and to establish secure, transparent, accountable, and auditable data related to supply chains.

To advance this initiative, the committee directed Austin to provide a briefing by April 1, 2025.

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The blockchain briefing must address six key areas, including:

“A plan for pilot programs or research and development efforts to explore the use of blockchain technology in national security applications, including supply chain management, cybersecurity for critical infrastructure assets, and procurement auditability.”

Other areas include identifying the benefits and risks of blockchain in supply chain tracking and management, analyzing the current state of blockchain adoption in the supply chain industry and foreign countries like China and Russia, and assessing feasibility and cost estimates.

While the US Senate committee considers blockchain adoption, US politicians are also advocating for Bitcoin and crypto adoption.

On July 8, an update to Republican Party presidential candidate Donald Trump’s campaign website revealed that the Republican National Committee had drafted a policy platform supporting cryptocurrencies and Bitcoin mining.

“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,” the updated platform stated.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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