These domains and areas are being weaponized for strategic purposes, as adversaries target cross-domain North Atlantic Treaty Organization (NATO) interests with the intent of weakening the Western security architecture and fragmenting alliance cohesion. The Trump administration must work closely with NATO allies to confront the many challenges that face them.

Strategic challenges, such as the Arctic, deep sea, and space, and the threats they pose require improved joint military readiness, enhanced deterrence by denial capabilities, and improved intelligence, surveillance, and reconnaissance.

“Over the last 15 years,” writes Scott Savits, “the Arctic has become a renewed theatre of military competition…. [T]op Russian officials have referred to the Arctic as Russia’s ‘Mecca,’ and a large fraction of Russia’s economy is based on Arctic fossil fuels and minerals.” Frustrating Russian efforts to gain a strategic advantage in the Arctic is of paramount importance to NATO’s deterrence mission.

Russia gaining an advantage in the Arctic will enhance its ability to establish escalation dominance against NATO in the event of a conflict with the alliance. Deterring Russia from broadening the scope of conflict, by threatening NATO’s vital interests in the Arctic, remains critical in dissuading other adversaries, such as China, from seeking to gain similar advantage.

With China developing and deploying new detection technologies in anti-submarine warfare, American nuclear submarine capabilities are becoming increasingly vulnerable to detection and targeting. China’s “Death Star” satellite claims to possess detection capabilities that renders the ocean transparent for up to 500 meters beneath the surface, putting American submarines at risk.

In the space domain, it is estimated that loss of access to space would come at a cost of roughly One billion pounds per day to the British economy. The reported deployment of Russian anti-satellite weapons systems (ASAT) in space are clearly coercive moves designed to threaten NATO’s space assets.

Russia’s weaponization of space is especially concerning as NATO depends on space to conduct an array of operations across the spectrum of deterrence and defence. Most notably, NATO airpower relies on space-based and space-dependent systems to fulfil a series of critical security functions. Leveraging robust deterrence capabilities in orbit, through targeting Russian and Chinese space-based military and non-military assets, is critical to securing NATO’s vital interests in space.

Beyond seeking strategic advantage, China is also expanding and modernising its nuclear arsenal at an unprecedented rate since the end of the Cold War. The Pentagon forecasts that China will be a nuclear peer of the United States by 2035. The latest figures published by the Federation of American Scientists show that China now possesses at least 500 operationally deployed nuclear weapons—up 43 percent from 2020.

Russian President Vladimir Putin continues to undermine international norms by persisting in threats to use battlefield nuclear weapons in Ukraine. Russia also deploys dual-use satellite technologies in space, capable of carrying nuclear warheads into orbit, in direct contravention of long-standing international treaties such as the Outer Space Treaty (1967), which prohibits the weaponization and nuclearization of space.

Meanwhile, Iran, a latent nuclear state, coerces the West by threatening the weaponization of its nuclear program. Iran also infiltrated the West by creating extremist networks through community centers, laundering money in major European and American cities that is used by criminal gangs to plot and execute terrorist attacks.

Proxies supported by Iran, such as Hamas and Hezbollah, can also launch increasingly devastating attacks. Furthermore, attacks like October 7, 2024, or September 11, 2001, do not warrant nuclear retaliation. A nuclear response to a terrorist attack, depending on the attack, is likely a disproportionate response.

China and Russia also engage in subversive activities within the cyber domain, sowing discord by using disinformation, intellectual property theft, and malign interference to destabilize NATO member states. Cyberattacks on critical national infrastructure can also inflict severe levels of damage. The appropriateness of cross-domain responses is yet to be decided.

The cyber attacks against Estonia in 2007, which lasted for 22 days, did not result in the triggering of NATO’s Article 5 collective defense clause. Yet, it was an attack on a NATO member state. The character of the attack complicated the process by which a viable and appropriate retaliatory response could be devised. In a multidomain threat landscape, hostile state actors conducting their operations in the grey zone can claim plausible deniability.

China, Iran, Russia, and North Korea also hold joint exercises, share intelligence, exchange military capabilities, and share a diplomatic and political kinship. This axis of Western adversaries shares the same geopolitical and economic objectives. They seek to replace the international rules-based order and establish alternative institutional frameworks to global order that undermine concepts such as democracy, human rights, rule of law, and national sovereignty.

Militarily, nowhere is this more apparent than in Russia, where Iranian drones and North Korean soldiers were provided to aid Putin’s war in Ukraine. Politically, emerging international blocs such as the BRICS demonstrate the extent to which countries like China and Russia are gaining traction in driving alternatives to the current order.

“As hybrid threats evolve to encompass the whole of digital and networked societies,” wrote Sean Monaghan, “so too will the capabilities required to deter them. A more complex threat environment will make predicting attacks and vulnerabilities more difficult, so nations may rely more on resilience.”

Hence, for deterrence to be effective today, credibility must incorporate more than hard power capabilities. Red lines must be communicated effectively across different channels. Resolve must be demonstrated through a force posture that includes a willingness to establish escalation dominance in a crisis scenario. The art of deterrence is also about determining and holding at risk what an adversary values.

As the outgoing US Secretary of Defence General (Ret.) Lloyd Austin said in 2022, cross-domain deterrence “is the right mix of technology, operational concepts, and capabilities—all woven together and networked in a way that is credible, flexible and so formidable that it will give any adversary pause…. [It is] multidomain, spans numerous geographic areas of responsibility, is united with allies and partners, and is fortified by all instruments of national power.”

Ultimately, deterrence is about credibly threatening to impose unacceptable costs, by denial or punishment, on a would-be aggressor. Those costs must convince the would-be aggressor that they outweigh any potential gains made.

Therefore, it is imperative for the US and NATO to increase cross-domain capabilities to match those of adversaries. Adopting a combination of different violent and non-violent means, to conduct deterrence credibly across multiple domains and at various levels of intensity, will enhance NATO’s ability to secure its vital interests in an increasingly volatile era of global strategic competition.

Alex Alfirraz Scheers holds a diploma in Politics and History from the Open University, a bachelor’s degree in War Studies and History from King’s College London, and a master’s degree in National Security Studies from King’s College London. He has held research positions at the Henry Jackson Society and the International Centre for the Study of Radicalisation, and his articles have been published in the Diplomat, Times of Israel, RealClearDefense, and the Royal United Services Institute. Views expressed in this article are the author’s own. 

Deterrence and NATO’s Emerging Security Environment was originally published on Global Security Review.

Too few Americans contemplate the role of digital currency volatility in acting as a barrier or an enabler to nuclear deterrence. The reality is that there are opportunities and risks that volatile cryptocurrency plays in the strategic calculus of nuclear states.

Cryptocurrency and Geopolitical Shifts

Cryptocurrencies are decentralized and borderless, challenging traditional financial systems and reshaping how states interact economically. Their volatility stems from market immaturity, speculative trading, regulatory uncertainties, and evolution of these ever-changing technologies. Essentially created to prevent intermediaries, like banks and financial institutions, cryptocurrencies lay the foundation for trustless transactions for illicit activities.

This volatile mix of person-to-person transactions and zero oversight introduces both unpredictability and opportunity, raising questions about their implications for nuclear deterrence, which now must deal with a domain that includes ungoverned access to financial streams that can be used by state and non-state actors to engage in elicit behavior that undermines deterrence stability.

Nuclear deterrence relies on a delicate balance of power, with states maintaining assured second-strike capabilities to dissuade adversaries from initiating conflict. This balance hinges on credibility and capability. Cryptocurrencies, with their volatile swings in value, could serve to undermine stability within a country or enable elicit actors to engage in a range of nonnuclear actions that undermine strategic stability.

The Risks of Cryptocurrency Volatility as a Barrier

Cryptocurrency volatility can act as a barrier to nuclear deterrence by creating financial instability and undermining a state’s ability to project economic power. Traditional nuclear powers depend on stable economies to maintain robust defense capabilities, fund deterrence strategies, and support diplomatic efforts. Sharp and unpredictable fluctuations in digital assets can undermine financial stability, weakening a state’s capacity to fund critical defense initiatives.

For the United States, crypto is not a major issue currently. But, for North Korea, who funds its nuclear program through elicit activities, crypto is important. Proliferators also use crypto to conduct activity. Instability in crypto makes illicit activity even more high stakes and unpredictable.

Instability creates advantages for state and non-state actors to exploit cryptocurrency markets for nefarious purposes, such as evading sanctions, financing proliferation, and bypassing traditional financial controls. The decentralized nature of cryptocurrencies complicates efforts to monitor, track, and regulate illicit activities, potentially undermining efforts to prevent the spread of nuclear weapons or restrict financing for state and non-state actors pursuing destabilizing weapons programs.

Cryptocurrency instability also presents a challenge to strategic stability through cyber threats. If critical financial systems or exchanges are disrupted, or if adversaries manipulate markets to harm a nation’s economy, it could create economic shocks severe enough to destabilize deterrence relationships, increase miscalculation risks, or fuel insecurity-driven arms build-ups.

The Darknet and Conflict Escalation

Darknet cryptocurrency markets empower bad actors by offering anonymity and decentralized financial tools, enabling a wide range of conflict-escalating activities. These markets facilitate the purchase of illegal arms, military-grade technology, and hacking tools, often used to destabilize regions and target critical infrastructure (command-and-control systems) through cyberattacks.

Terror organizations leverage cryptocurrencies for anonymous funding, allowing them to finance operations, recruit globally, and expand their influence. Sanctioned entities exploit these markets to bypass international restrictions and acquire resources that fuel aggressive actions.

The ability to transact anonymously with cryptocurrencies also shields organized crime, including narcotics and human trafficking, whose revenues often fund conflict zones and insurgent groups. Covert exchanges on the darknet can increase espionage, destabilize international relations, and provoke hostilities to serve a radically motivated agenda.

In parallel, extremist groups utilize these platforms to spread propaganda, incite violence, and radicalize populations, further destabilizing fragile regions. The combination of anonymity, decentralized systems, and hidden economies presents a formidable challenge for global security efforts aimed at conflict prevention and stability.

Cryptocurrency as an Enabler of Nuclear Deterrence

On the other hand, cryptocurrency volatility also opens new avenues for strengthening nuclear deterrence through financial resilience and innovation. The decentralized nature of digital assets can enable states to diversify their financial resources and reduce dependency on traditional systems that might be vulnerable to adversarial influence or geopolitical tensions. In times of economic crisis or sanctions, cryptocurrencies can provide states with alternative means to maintain fiscal stability, thus supporting their deterrent capabilities. Countering bad activities with good can be as challenging as the reliance on traditional financial stability for positive security assurance.

Furthermore, blockchain technology, which underpins cryptocurrencies, offers potential for transparency, accountability, and verification mechanisms in arms control agreements. By leveraging blockchain, states can create tamper-proof records for tracking nuclear materials, enhancing verification regimes, and building trust between adversaries. The volatility of digital assets may fuel innovation and drive investment into these applications, ultimately strengthening nuclear stability and deterrence structures.

Balancing the Risks and Opportunities

While the volatility of cryptocurrencies poses undeniable risks, it is essential to approach them with a nuanced perspective to find the right balance between risk and reward. Policymakers must strike a balance between leveraging the opportunities that digital assets present and mitigating their risks to global security. Collaborative efforts to regulate and stabilize cryptocurrency markets can reduce the likelihood of financial instability while harnessing the potential of decentralized systems.

In addition, enhanced cybersecurity measures must accompany any state or multilateral effort to integrate cryptocurrency into the financial systems that underpin deterrence capabilities. Protecting digital infrastructure against malicious actors will ensure that the advantages of decentralized assets are not overshadowed by their exploitation for destabilizing purposes.

A New Strategic Frontier

The volatility of cryptocurrency markets is both a challenge and a frontier for instability of nuclear deterrence. While it poses risks through financial instability, illicit use, and cyber threats, it also offers opportunities for financial resilience, innovation, and transparency. In today’s evolving digital environment, nations must adapt to this dual-edged sword, developing strategies that incorporate the volatility of digital assets into a comprehensive approach to deterrence.

Ultimately, whether cryptocurrencies become a barrier or enabler of nuclear deterrence depends on how nations, regions, and regulators in the broader international community respond to this evolving challenge. By advocating cooperation, innovation, and regulation, cryptocurrencies can strengthen global security architectures and contribute to a stable nuclear order—turning volatility into a force for strategic stability and peace.

Greg Sharpe is the Marketing and Communications Director at the National Institute for Deterrence Studies. The views expressed in this article are his own.

The Volatility of Cryptocurrency: Barrier or Enabler of Nuclear Escalation? was originally published on Global Security Review.

A Nuanced Continuity

Harris’ approach to nuclear deterrence will likely continue the multilateral strategy that characterizes the Biden administration. As vice president, she demonstrated a deep commitment to international alliances and a keen understanding of national security. This suggests that a Harris administration will maintain a strong nuclear deterrent as a cornerstone of national defense, while also advocating for arms control and nonproliferation efforts.

Additionally, a Harris administration will benefit from a seasoned foreign policy team. Her national security advisor, Phil Gordon, and his deputy, Rebecca Lissner, are experienced Washington hands who advocate for a balanced approach to American leadership. Their influence will likely steer Harris towards policies that emphasize deterrence without escalation and maintaining a credible nuclear arsenal while pursuing arms reductions.

Modernization with a Purpose

The Biden-Harris administration supports nuclear modernization as a component of national security. This includes updating existing systems and ensuring that the nuclear triad’s land-based missiles, submarine-launched ballistic missiles, and strategic bombers remain effective and secure. Modernization efforts are aimed at addressing the evolving threats posed by adversaries such as China and Russia, who are investing in advanced nuclear capabilities.

Additionally, during her tenure as a senator, Harris endorsed the importance of maintaining a credible nuclear deterrent to prevent adversaries from exploiting perceived weaknesses. Her support for modernization reflects a recognition that technological advancements and evolving geopolitical dynamics necessitate a reliable and secure nuclear arsenal. This perspective aligns with her broader commitment to national defense and security.

Generational Shift in Perspective

Kamala Harris represents a generational shift. Unlike her predecessors, she brings a globalized outlook shaped by her immigrant heritage and diverse experiences. This worldview is likely to influence her approach to nuclear policy, emphasizing the interconnectedness of global security. Harris has frequently spoken about the importance of addressing modern threats such as climate change and human rights, which she sees as intertwined with traditional security concerns. This broader perspective could lead to a more integrated approach to deterrence, considering a wider array of factors influencing global stability.

Engagement with Allies

Harris’s extensive engagement with international partners signals a strong commitment to collective security. Her active participation in high-profile international summits, such as the Munich Security Conference, Asia-Pacific Economic Cooperation (APEC), Association of Southeast Asian Nations (ASEAN) Summit, and the Conference of Paris (COP) climate summit in Dubai, underscores her belief in the power of alliances and multilateral cooperation. Harris has also demonstrated unwavering support for Ukraine in the face of Russian aggression, reflecting her dedication to upholding international norms and supporting allies under threat.

Under her leadership, the US is likely to continue strengthening NATO and other strategic partnerships—presenting a unified front against nuclear threats. Harris’ approach would emphasize the importance of solidarity among allies to ensure that deterrence strategies are robust and effective. Her support for multilateralism suggests she will work closely with allies to enhance deterrence capabilities, sharing intelligence and coordinating military strategies to address potential nuclear challenges.

Moreover, Harris’ experience on the Intelligence and Homeland Security Committees, combined with her background as a prosecutor, equips her with the skills to navigate complex security issues and engage in rigorous policy discussions. This expertise is instrumental in developing nuanced and comprehensive approaches to nuclear deterrence, ensuring that the US and its allies are well-prepared to counter any threats.

Strategic Restraint and Humanitarian Concerns

Harris’ stance on Israel and Gaza underscores her readiness to challenge established policies when humanitarian concerns are prominent. This approach reflects a broader principle that could significantly impact her handling of American nuclear deterrence. Harris’ sensitivity to the human costs of conflict suggests a preference for strategies that go beyond military force. Harris’ focus on humanitarian issues and her critical stance on the conduct of international conflicts indicate that she will prioritize the development of policies that not only ensure national security but also reflect ethical considerations.

Policy Evolution and Public Sentiment

Harris’ approach to nuclear deterrence will also reflect evolving public sentiment, particularly among younger Americans who prioritize issues like climate change and human rights. This demographic shift indicates a growing preference for a security strategy that integrates traditional defense measures with contemporary global challenges.

Her administration could leverage this support to advance comprehensive security policies that address both traditional and emerging threats. This means not only maintaining a credible nuclear deterrent to deter adversaries but also incorporating measures to combat climate change, promote human rights, and address cyber threats. By doing so, Harris can appeal to a new generation of Americans who demand a more holistic and forward-thinking approach to national and global security.

Conclusion

A Kamala Harris presidency may be positioned well to navigate the complexities of nuclear deterrence with a blend of strategic continuity and innovative evolution. Harris’ experience and commitment to multilateralism suggests a firm dedication to maintaining a credible and secure nuclear arsenal while actively pursuing arms control and nonproliferation efforts. Her support for nuclear modernization underscores the necessity of a reliable deterrent in the face of evolving global threats, reflecting a pragmatic approach to national security.

At the same time, Harris offers a generational shift in perspective and emphasis on global interconnectedness. Her focus on integrating humanitarian concerns, strategic restraint, and diplomatic engagement could lead to a more balanced and ethical approach to deterrence. This perspective aligns with her commitment to addressing contemporary global challenges, such as climate change and human rights.

Harris’ extensive international engagement and support for multilateral cooperation highlight her belief in the power of alliances to bolster deterrence and manage nuclear risks. Her administration will likely continue to strengthen NATO and other strategic partners—ensuring that American nuclear policy is both robust and cooperative.

As public sentiment evolves, particularly among younger generations who prioritize a holistic security strategy, Harris’ approach may resonate strongly with voters. By integrating traditional defense measures with contemporary priorities, her presidency may offer a nuanced and forward-thinking approach to nuclear deterrence, addressing both immediate security needs and long-term global stability.

Aaron Holland is a PhD candidate at the University of Utah and an analyst at the National Institute for Deterrence Studies. Views expressed are the author’s own. 

What a Kamala Harris Presidency Means for Deterrence was originally published on Global Security Review.