China and Russia are using Bitcoin to settle energy transactions, signaling a potential shift away from the US dollar.
According to a recent report by VanEck, China and Russia have started using Bitcoin to settle some commercial transactions in the energy sector. This move comes amid global trade tensions, exacerbated by the introduction of new tariffs by the Trump administration on April 2, primarily targeting Chinese imports.
Matthew Sigel, head of digital assets research at VanEck, highlighted how interest in Bitcoin as a settlement mechanism is becoming more practical. Not only major trading powers like China and Russia are embracing this payment method, but countries such as Bolivia have announced plans to import electricity via cryptocurrency-based payments. Additionally, French energy giant EDF is considering using Bitcoin mining as a solution to utilize surplus electricity currently being exported to Germany. According to Sigel, the tariffs imposed by the Trump administration could accelerate the use of Bitcoin in trade transactions.
As reported by Russian central bank governor Elvira Nabiullina to the State Duma on April 9, businesses in Russia are exploring digital assets and showing interest in cryptocurrency payments under an experimental legal regime.
Investors are also closely watching the evolution of the Federal Reserve‘s position, Sigel added. Historically, accommodative turns in interest rate expectations and increased liquidity conditions have favored Bitcoin’s performance, as noted by the analyst. A key indicator remains the US Dollar Index (DXY): a sustained weakening of the dollar could strengthen Bitcoin as a macroeconomic hedge, Sigel suggested.
