The US Central Intelligence Agency (CIA) Is Increasingly Incorporating Bitcoin (BTC)

The US Central Intelligence Agency (CIA) is increasingly incorporating Bitcoin (BTC) as a tool in its operations

The US Central Intelligence Agency is increasingly incorporating Bitcoin (BTC) as a tool in its operations, and working with the cryptocurrency is a matter of national security, the agency’s deputy director, Michael Ellis, has said.

In an appearance on Anthony Pompliano’s podcast, which was published on Monday, Ellis told the market analyst and investor that the intelligence agency is working with law enforcement to track BTC, and it is a point of data collection in counter-intelligence operations.

"It's another area of competition where we need to ensure the United States is well-positioned against China and other adversaries," Ellis added.

Although Ellis's comments point to Bitcoin maturing as an asset, they also reflect the increased involvement of governments and institutions in Bitcoin and cryptocurrencies. This increased involvement runs contrary to the libertarian and cypherpunk ethos originally inherent in crypto.

Earlier this week, President Donald Trump signed an executive order establishing a Bitcoin Strategic Reserve, to mixed reactions from the Bitcoin community.

Bitcoin Magazine CEO David Bailey welcomed the move, while Venice AI founder and BTC advocate Erik Vorhees expressed concern over the government owning any Bitcoin.

"If the U.S. government is to adopt any crypto reserve, it should be Bitcoin-only," Vorhees added.

Concerns that cryptocurrencies have lost their cypherpunk roots predate the current market cycle and any strategic reserve legislation or comprehensive regulatory frameworks for digital assets.

Back in March 2020, Therese Chambers, the former director of retail and regulatory investigations at the United Kingdom’s Financial Conduct Authority (FCA), said that cryptocurrencies had become increasingly financialized and institutionalized.

This development, Chambers added, had led to digital assets behaving far more like traditional financial instruments than the privacy-preserving tools they were initially billed as.