- VanEck confirms China and Russia now settle some energy trades using Bitcoin,
- Bolivia joins in by exploring crypto-based energy imports, and France’s EDF considers mining Bitcoin with surplus electricity.
- Rising global trade tensions and tariff escalations are prompting nations to adopt decentralized digital settlement methods like Bitcoin.
Investment firm VanEck released a report revealing that China and Russia have started to settle some energy-related transactions via Bitcoin. This represents a major shift from traditional dollar-based settlement systems in international trade. The focus is particularly on energy trade, which is often impacted by sanctions and policy restrictions.
VanEck’s head of digital assets research, Matthew Sigel, pointed out that the bitcoin trade settlement tilt has moved from theory to implementation. Using Bitcoin and other digital assets enables the participating nations to conduct cross-border trades with minimal barriers and intermediaries. In addition, Sigel mentioned that other countries, such as Bolivia, are implementing the same as by announcing plans to utilize cryptocurrency for purchasing power imports.
Growing Interest Amid Global Trade Tensions
The developments follow a series of United States-imposed tariff action reignited global trade tensions. The tariff package issued by the Trump administration targets imports from China and the European Union and will bring economic pressure on the countries again. The move has prompted China to impose taxes on American goods, worsening international trade.
According to VanEck’s report, increasing geopolitical risks are encouraging some nations to seek alternative financial systems. The countries are trying to reduce their dependence on the U.S.-controlled monetary infrastructure. Bitcoin offers a decentralized settlement method for energy-producing and importing countries that might be financially restricted or sanctioned.
Bolivia and France Exploring Crypto Integration
Besides China and Russia, Bolivia has also agreed to use cryptocurrency to pay for electricity imports. The move is reportedly part of a broader strategy of using blockchain payments to bypass traditional banking restrictions. Therefore, by adopting such mechanisms, Bolivia is aligning itself with nations looking to diversify trade and payment channels.
Moreover, French utility provider EDF is assessing the prospect of using its excess electricity for Bitcoin mining. Instead of exporting the surplus to Germany to generate revenue, EDF plans to channel that energy into mining operations. This move shows how digital assets can be integrated with traditional utility operations.
How Dollar Dominance and Bitcoin’s Strategic Role Are Affected
The rise of cryptocurrency settlements is working toward undermining the U.S. dollar’s dominance in global trade. However, countries can harness this with Bitcoin as an energy instrument to reduce reliance on common structures highly susceptible to U.S. monetary policy or sanctions. VanEck said this shift supports Bitcoin as a reliable tool for international trade.
Additionally, the report also highlights the potential for the broader macroeconomic environment to boost the adoption of digital assets. The liquidity conditions presented by the U.S. Federal Reserve easing monetary policy have benefitted Bitcoin in the past. All these factors may create additional interest in emerging economies’ use of crypto settlements.
Wider Implications for Global Financial Systems
Bitcoin is still in the spotlight and is used only limitedly in global trade. According to VanEck, partial adoption by major economies shows a significant change in how digital assets are treated. Geopolitical pressures would lead more countries to employ the same strategy for greater financial autonomy.
VanEck notes that the trend is in its early innings but could ultimately reshape global trade flows. According to the firm, digital assets have stopped being solely tools for speculative markets and are turning into practical instruments for global trade.
