China and Russia Turn to Bitcoin as US Tariffs Drive Shift in Global Finance
As global geopolitical tensions intensify, the growing use of Bitcoin is emerging as a strategic move for countries looking to minimize their reliance on the US dollar and the financial systems dominated by the US.
A recent report from VanEck highlights how the US’s use of financial power, particularly in trade and economic policies, is driving nations to seek alternative settlement systems.
US Financial System Under Scrutiny
VanEck’s analysis points out that the US’s actions in weaponizing trade policies, such as its sanctions against Russia, have triggered countries like China and Russia to explore neutral payment systems. Previously theoretical, these systems are now becoming more tangible as nations like Russia and China have begun settling energy trades using BTC and other digital assets. This shift represents a practical adaptation of Bitcoin as a legitimate financial instrument rather than merely a speculative asset.
Jonathan Hammel, a market analyst, noted that the erosion of trust in the US financial system accelerated in 2022, particularly after the US froze Russian assets and restricted access to key financial systems. This move, he argues, significantly contributed to the global shift toward alternatives like Bitcoin. The ongoing trade tensions and the growing desire to bypass US-imposed financial systems are likely to continue pushing this trend forward.
Expanding Use of Bitcoin Beyond Major Economies
The pivot towards Bitcoin is not limited to the world’s largest economies. Countries like Bolivia are also exploring the possibility of using Bitcoin for energy imports, while French energy company EDF is considering Bitcoin mining to utilize excess electricity. These are early signs of Bitcoin’s increasing integration into international finance, as countries seek ways to navigate the US-led financial frameworks and minimize exposure to the dollar.
VanEck’s Matthew Sigel highlights these developments as an indication of Bitcoin’s growing role in global finance, particularly in markets that aim to reduce their reliance on US financial dominance. As the demand for decentralized and neutral payment systems continues to grow, Bitcoin’s place in the future of global trade appears to be solidifying.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
