Key Takeaways
- China and Russia have used Bitcoin to settle certain energy trades.
- The move aims to reduce reliance on the U.S. dollar and evade Western sanctions.
- Other countries like Bolivia and France are also exploring Bitcoin for trade and energy use.
Amid escalating trade tensions and sanctions, China and Russia are increasingly using Bitcoin for cross-border transactions, particularly in the energy sector.
A report from investment firm VanEck confirms that both countries have completed some energy trades using Bitcoin and other digital assets to avoid the U.S. dollar and Western financial systems.
Background on sanctions & trade
This trend follows earlier reporting that Russian oil firms have used digital currencies in deals with China and India as they work around sanctions imposed after the 2022 invasion of Ukraine.
The turning point
Market analyst Jonathan Hammel noted that the turning point came in 2022 when the U.S. government froze Russian central bank assets and cut access to the dollar-clearing system.
Hammel wrote:
By doing so, they only exacerbated the flight out of USD to alternative currencies/networks including BTC.
Shift toward neutral payment networks
The VanEck report frames these developments as part of a larger shift toward neutral payment networks.
Bitcoin, once considered a speculative asset, is now being deployed in state-level transactions for its ability to bypass U.S. financial controls.
Broader adoption beyond major powers
Other countries are also exploring similar strategies.
Bolivia is considering using digital assets to pay for energy imports, and France’s EDF is investigating Bitcoin mining as a way to absorb surplus electricity instead of exporting it to Germany.
Signs of Bitcoin’s growing role
VanEck’s Matthew Sigel cited these examples as early signs of Bitcoin’s growing role in global trade settlements.
