The use of Bitcoin and other cryptocurrencies in global trade is becoming increasingly visible. Countries like China and Russia have begun applying cryptocurrencies for energy trading, signaling a search for alternatives to dollar dominance.
Bitcoin is Being Used for Energy Trade
According to Matthew Sigel, Head of Digital Asset Research at VanEck, cryptocurrencies like Bitcoin, Ether, and Tether are starting to replace traditional currencies in energy transactions between China and Russia. This development is seen as not merely a technical innovation but also an economic strategy aimed at decreasing dependency on the dollar.
As the Dollar Weakens, Bitcoin Is Gaining Ground
Sigel notes that the observed decline in the U.S. Dollar Index is strengthening Bitcoin’s position as a store of value. The loose monetary policy followed by the U.S. Federal Reserve and rising global liquidity create a favorable atmosphere for Bitcoin. The depreciation of China’s local currency, the yuan, has also driven investors towards digital assets.
New Economic Strategies Are in Play
U.S. tariffs and trade policies are escalating tensions in global markets, prompting many countries to devise strategies to break free from a dollar-centric system. It may lead to reshaping government economic policies and formal adoption of cryptocurrencies as trading instruments.
The use of Bitcoin and other digital currencies in international trade has the potential to alter global economic balances and lead to new long-term strategies. These changes are not only characteristic of short-term trading but may also critically impact international relations.
