Countries around the world are increasingly turning to digital currencies like Bitcoin to move money in ways that are harder for other nations to track or control. This shift has become especially noticeable in recent years as global tensions rise and traditional financial systems face new challenges. One of the most pressing questions today is whether countries are using Bitcoin sales to fund war efforts. The answer is not simple, but evidence from several nations shows that digital currencies are playing a growing role in how governments and groups finance military actions, bypass sanctions, and support covert operations.
Russia is one of the most prominent examples of a country using Bitcoin and other cryptocurrencies to fund activities related to war. Since the start of its conflict in Ukraine, Russia has faced severe international sanctions that have cut off much of its access to the global banking system. These sanctions have made it difficult for Russia to use US dollars or euros for international payments, and have limited its ability to move money through traditional channels like SWIFT. In response, Russia has turned to digital currencies as a way to skirt these restrictions.
Between July 2024 and June 2025, Russia saw more than $379 billion in crypto inflows, a massive increase compared to the previous year. This surge in crypto usage is not just about ordinary citizens protecting their savings from inflation. The Russian government itself has taken steps to legalize the use of cryptocurrencies for international payments and has even allowed crypto mining to become legal. President Vladimir Putin has publicly stated that no one can prohibit the use of Bitcoin, signaling a clear shift in the country’s approach to digital assets.
There are reports that Russian state-owned companies, such as Rosatom, have used stablecoins to launder hundreds of millions of dollars for clients trying to evade US sanctions. These funds have been used to acquire sensitive technology and support activities that would otherwise be blocked by international restrictions. The use of crypto allows Russia to move money quickly and anonymously, making it much harder for Western intelligence agencies to trace the flow of funds.
In addition to funding broader war efforts, there are also indications that Russia is using cryptocurrencies to pay for specific operations, including sabotage and hybrid attacks in Europe. Reports have emerged that Russia has paid saboteurs in countries like Poland using Bitcoin and other digital currencies. This method of payment is attractive because it is difficult for intelligence services to track, allowing Russia to carry out covert actions without leaving a clear financial trail.
The United States has taken a very different approach to Bitcoin, but its actions also highlight the growing importance of digital currencies in national strategy. President Donald Trump has made it clear that he wants the US to become a global leader in Bitcoin and digital assets. In 2025, the US government established a Strategic Bitcoin Reserve, using coins that had been seized from criminal activities. This reserve is often compared to Fort Knox, the famous gold storage facility, and is seen as a way to strengthen the country’s financial position in the digital age.
The US has not used Bitcoin sales to fund war efforts in the same way as Russia, but the creation of a national Bitcoin reserve shows that the government sees digital currencies as a strategic asset. By holding a large amount of Bitcoin, the US is positioning itself to have more influence over the global crypto market and to protect its financial interests in a world where digital currencies are becoming more important.
Other countries are also making moves that show how digital currencies are being integrated into national strategies. India, for example, has cracked down on offshore crypto exchanges and is pushing hard to promote its own digital rupee, a central bank digital currency. This move is part of a broader effort to control the flow of money within the country and to reduce the influence of private cryptocurrencies. By focusing on a state-controlled digital currency, India is trying to ensure that it can monitor and regulate all digital transactions, which could be important in times of conflict or crisis.
The European Union is also taking steps to regulate digital currencies more closely. In late 2025, the EU began phasing in new rules under the MiCA framework, which aims to create a clear regulatory environment for crypto assets. At the same time, the EU has started to target crypto platforms that are used to evade sanctions, recognizing that digital currencies can be used to bypass traditional financial controls. This shows that European governments are aware of the risks posed by unregulated crypto and are taking action to prevent it from being used to fund war efforts or other illicit activities.
The use of Bitcoin and other cryptocurrencies to fund war efforts is not limited to any one region or type of government. In countries facing sanctions or international isolation, digital currencies offer a way to move money and support military actions without relying on traditional banking systems. For countries that are not under sanctions, holding Bitcoin can be a way to strengthen national financial power and gain an advantage in the global economy.
The technology behind Bitcoin makes it possible to send money across borders quickly and with a high degree of anonymity. This is both a benefit and a risk. On one hand, it allows people and governments to protect their assets and conduct business in ways that are not possible with traditional currencies. On the other hand, it creates opportunities for bad actors to use crypto for illegal purposes, including funding wars, evading sanctions, and carrying out covert operations.
As more countries adopt digital currencies and develop their own strategies for using them, the role of Bitcoin in global finance and conflict is likely to grow. Governments are learning how to use crypto to their advantage, whether by holding reserves, regulating exchanges, or using digital currencies to bypass restrictions. At the same time, international efforts to control and monitor crypto are also increasing, as countries try to prevent digital currencies from being used to fund war efforts or other harmful activities.
The situation is constantly evolving, with new developments happening all the time. As digital currencies become more widespread, the ways in which they are used to fund war efforts will continue to change. The technology is still relatively new, and the rules and regulations around it are still being written. This means that the impact of Bitcoin on global conflict and finance is likely to be a major issue for years to come.