China’s Crypto strategy is turning money into a weapon of statecraft. A recent study published by Study Times—the journal of China’s Central Party School—argued that digital assets now shape warfare and finance. The study described crypto and central bank digital currencies (CBDCs) as tools of “financial mobilization.” They allow states to redirect liquidity when banks fail or sanctions tighten. Blockchain networks were called a “digital logistics front,” merging economic survival with national security. Digital money becomes a tool of geopolitical power The study said the battlefield now stretches into finance. Crypto forms an infrastructure for “total war,” blending deterrence, capital mobilization, and social stability. By digitizing money flows, Beijing could sustain liquidity, fund defense industries, and support domestic demand when global finance fractures. It also outlined a triad of “total war, hybrid war, and digital financial war,” claiming that digital ledgers underpin national resilience. The digital yuan and blockchain settlements act as strategic assets within this framework. They are built to operate independently of U.S. sanctions and the SWIFT network. “Digital currencies have become strategic assets in hybrid warfare, reshaping cross-border capital flows during wartime.” — Study Times (2025) This shift reflects a broader trend. Economist Barry Eichengreen notes that the dollar’s share of global reserves fell from 71% in 2000 to 58% in 2024. He wrote that governments are “moving away from the dollar… for geopolitical reasons, while firms still prefer its liquidity.” Meanwhile, Beijing’s mBridge project—linking CBDCs from China, Saudi Arabia, Thailand, and the UAE—seeks to bypass SWIFT and build a parallel network beyond the US’s reach. For China, blockchain means more than speed; it represents autonomy under economic pressure. The TRM Labs 2025 Crypto Crime Report shows that digital assets operate on both sides of the geopolitical battlefield. Sanctioned exchanges such as Russia’s Garantex and Iran’s Nobitex handled over 85% of illicit inflows to restricted markets. Distribution of 86 designated addresses | TRM Terror groups—including Hamas, Hezbollah, and ISIS affiliates—used stablecoins like USDT on TRON to raise funds. As a result, Israel froze millions in related accounts. Digital finance, once hailed as borderless innovation, has instead become a field of control and enforcement. From cyber defense to “soft power” projection Military theorist Jason P. Lowery argues in Softwar that Bitcoin is “a non-lethal form of power projection—a digital defense system secured by electricity, not explosives.” This idea now shapes Beijing’s view of blockchain as a base for resilience and deterrence. By embedding monetary control in code, states can project power through networks instead of troops. Visualizing blockchain applications in military contexts | Blockchain Applications in the Military Domain A 2025 review in Technologies found that blockchain “strengthens military operations through secure communication, immutable logistics, and quantum-safe authentication.” Researchers said distributed ledgers can harden command systems and supply chains against cyber or physical attacks. These findings show how cryptographic infrastructure is shifting from finance to defense, linking data integrity, funding agility, and operational trust. The geopolitical divide is widening. Western governments aim to limit crypto’s militarization, whereas China embeds it in state policy. As Eichengreen cautioned, “geopolitics cuts both ways.” Depending on who builds the rails, crypto could weaken or reinforce dollar dominance. Ultimately, Beijing’s hybrid model—combining economic control with technological sovereignty—signals that the next great-power contest will unfold in markets or cyberspace and across the distributed ledgers that connect them.China’s Crypto strategy is turning money into a weapon of statecraft. A recent study published by Study Times—the journal of China’s Central Party School—argued that digital assets now shape warfare and finance. The study described crypto and central bank digital currencies (CBDCs) as tools of “financial mobilization.” They allow states to redirect liquidity when banks fail or sanctions tighten. Blockchain networks were called a “digital logistics front,” merging economic survival with national security. Digital money becomes a tool of geopolitical power The study said the battlefield now stretches into finance. Crypto forms an infrastructure for “total war,” blending deterrence, capital mobilization, and social stability. By digitizing money flows, Beijing could sustain liquidity, fund defense industries, and support domestic demand when global finance fractures. It also outlined a triad of “total war, hybrid war, and digital financial war,” claiming that digital ledgers underpin national resilience. The digital yuan and blockchain settlements act as strategic assets within this framework. They are built to operate independently of U.S. sanctions and the SWIFT network. “Digital currencies have become strategic assets in hybrid warfare, reshaping cross-border capital flows during wartime.” — Study Times (2025) This shift reflects a broader trend. Economist Barry Eichengreen notes that the dollar’s share of global reserves fell from 71% in 2000 to 58% in 2024. He wrote that governments are “moving away from the dollar… for geopolitical reasons, while firms still prefer its liquidity.” Meanwhile, Beijing’s mBridge project—linking CBDCs from China, Saudi Arabia, Thailand, and the UAE—seeks to bypass SWIFT and build a parallel network beyond the US’s reach. For China, blockchain means more than speed; it represents autonomy under economic pressure. The TRM Labs 2025 Crypto Crime Report shows that digital assets operate on both sides of the geopolitical battlefield. Sanctioned exchanges such as Russia’s Garantex and Iran’s Nobitex handled over 85% of illicit inflows to restricted markets. Distribution of 86 designated addresses | TRM Terror groups—including Hamas, Hezbollah, and ISIS affiliates—used stablecoins like USDT on TRON to raise funds. As a result, Israel froze millions in related accounts. Digital finance, once hailed as borderless innovation, has instead become a field of control and enforcement. From cyber defense to “soft power” projection Military theorist Jason P. Lowery argues in Softwar that Bitcoin is “a non-lethal form of power projection—a digital defense system secured by electricity, not explosives.” This idea now shapes Beijing’s view of blockchain as a base for resilience and deterrence. By embedding monetary control in code, states can project power through networks instead of troops. Visualizing blockchain applications in military contexts | Blockchain Applications in the Military Domain A 2025 review in Technologies found that blockchain “strengthens military operations through secure communication, immutable logistics, and quantum-safe authentication.” Researchers said distributed ledgers can harden command systems and supply chains against cyber or physical attacks. These findings show how cryptographic infrastructure is shifting from finance to defense, linking data integrity, funding agility, and operational trust. The geopolitical divide is widening. Western governments aim to limit crypto’s militarization, whereas China embeds it in state policy. As Eichengreen cautioned, “geopolitics cuts both ways.” Depending on who builds the rails, crypto could weaken or reinforce dollar dominance. Ultimately, Beijing’s hybrid model—combining economic control with technological sovereignty—signals that the next great-power contest will unfold in markets or cyberspace and across the distributed ledgers that connect them.

China Turns Crypto into a Weapon of Statecraft: Digital Yuan at the Frontlines

2025/10/22 10:00

China’s Crypto strategy is turning money into a weapon of statecraft. A recent study published by Study Times—the journal of China’s Central Party School—argued that digital assets now shape warfare and finance.

The study described crypto and central bank digital currencies (CBDCs) as tools of “financial mobilization.” They allow states to redirect liquidity when banks fail or sanctions tighten. Blockchain networks were called a “digital logistics front,” merging economic survival with national security.

Digital money becomes a tool of geopolitical power

The study said the battlefield now stretches into finance. Crypto forms an infrastructure for “total war,” blending deterrence, capital mobilization, and social stability. By digitizing money flows, Beijing could sustain liquidity, fund defense industries, and support domestic demand when global finance fractures.

It also outlined a triad of “total war, hybrid war, and digital financial war,” claiming that digital ledgers underpin national resilience. The digital yuan and blockchain settlements act as strategic assets within this framework. They are built to operate independently of U.S. sanctions and the SWIFT network.

This shift reflects a broader trend. Economist Barry Eichengreen notes that the dollar’s share of global reserves fell from 71% in 2000 to 58% in 2024. He wrote that governments are “moving away from the dollar… for geopolitical reasons, while firms still prefer its liquidity.”

Meanwhile, Beijing’s mBridge project—linking CBDCs from China, Saudi Arabia, Thailand, and the UAE—seeks to bypass SWIFT and build a parallel network beyond the US’s reach. For China, blockchain means more than speed; it represents autonomy under economic pressure.

The TRM Labs 2025 Crypto Crime Report shows that digital assets operate on both sides of the geopolitical battlefield. Sanctioned exchanges such as Russia’s Garantex and Iran’s Nobitex handled over 85% of illicit inflows to restricted markets.

Distribution of 86 designated addresses | TRM

Terror groups—including Hamas, Hezbollah, and ISIS affiliates—used stablecoins like USDT on TRON to raise funds. As a result, Israel froze millions in related accounts. Digital finance, once hailed as borderless innovation, has instead become a field of control and enforcement.

From cyber defense to “soft power” projection

Military theorist Jason P. Lowery argues in Softwar that Bitcoin is “a non-lethal form of power projection—a digital defense system secured by electricity, not explosives.” This idea now shapes Beijing’s view of blockchain as a base for resilience and deterrence. By embedding monetary control in code, states can project power through networks instead of troops.

Visualizing blockchain applications in military contexts | Blockchain Applications in the Military Domain

A 2025 review in Technologies found that blockchain “strengthens military operations through secure communication, immutable logistics, and quantum-safe authentication.” Researchers said distributed ledgers can harden command systems and supply chains against cyber or physical attacks. These findings show how cryptographic infrastructure is shifting from finance to defense, linking data integrity, funding agility, and operational trust.

The geopolitical divide is widening. Western governments aim to limit crypto’s militarization, whereas China embeds it in state policy. As Eichengreen cautioned, “geopolitics cuts both ways.” Depending on who builds the rails, crypto could weaken or reinforce dollar dominance. Ultimately, Beijing’s hybrid model—combining economic control with technological sovereignty—signals that the next great-power contest will unfold in markets or cyberspace and across the distributed ledgers that connect them.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
Share Insights

You May Also Like

Warsaw Stock Exchange lists its first Bitcoin ETF

Warsaw Stock Exchange lists its first Bitcoin ETF

The post Warsaw Stock Exchange lists its first Bitcoin ETF appeared on BitcoinEthereumNews.com. The Warsaw Stock Exchange has listed its first Bitcoin ETF, offering investors regulated exposure to BTC through futures contracts. Summary The Bitcoin BETA ETF tracks BTC through CME futures and includes a hedging strategy to reduce USD/PLN currency risk. Approved by Poland’s Financial Supervision Authority, the fund is managed by AgioFunds TFI. Bitcoin ETF arrives on Warsaw Stock Exchange The Warsaw Stock Exchange (GPW) has listed its first-ever crypto ETF, the Bitcoin BETA ETF. According to GPW’s official announcement, the Bitcoin BETA ETF does not invest in physical Bitcoin (BTC), but gains exposure through futures contracts traded on the Chicago Mercantile Exchange. To minimize foreign exchange volatility, the fund employs a hedging strategy using forward contracts, insulating investors from fluctuations in the USD/PLN exchange rate. Developed by AgioFunds TFI, the ETF was approved by Poland’s Financial Supervision Authority in June and is backed by Dom Maklerski Banku Ochrony Środowiska S.A. as its market maker. “Offering exposure to Bitcoin through an ETF listed on GPW increases safety of trading, as investors can participate in the cryptocurrency market using an instrument which is supervised, cleared, and subject to the transparency standards applicable to a regulated capital market,” said Michał Kobza, Member of the Management Board of the Warsaw Stock Exchange. The current crypto ETF landscape Globally, Bitcoin ETFs have already gained traction on major exchanges, including Nasdaq, NYSE, and Cboe in the U.S., where a wave of spot Bitcoin ETFs was approved in early 2024. Other prominent markets include the Toronto Stock Exchange in Canada, Germany’s Xetra, Switzerland’s SIX Exchange, Brazil’s B3, and Cboe Australia. These ETFs offer various structures, from physically-backed spot products to futures-based funds, like the one just listed on GPW. Beyond Bitcoin and Ethereum, altcoin ETFs are increasingly gaining traction. According to the latest count by Bloomberg analysts,…
Share
2025/09/19 14:30
Share