China and Russia are taking steps towards using Bitcoin for transactions in commercial payments, which could alter international financial processes.
Use of Bitcoin in Commercial Exchanges
As stated by Matthew Sigel, head of crypto research at VanEck, China and Russia have begun using Bitcoin for certain commercial transactions, especially in the energy sector.
> These nations are using it in energy exchanges to avoid making payments in dollars.
This approach is a step towards currency diversification and seeking alternatives to traditional financial structures.
Bypassing Sanctions and New Payment Systems
The integration of Bitcoin into payments between China and Russia is part of a strategy to circumvent Western financial restrictions. Several Russian companies are using Bitcoin and USDt to settle oil transactions with China and India. This allows Russia to continue exporting oil despite Western sanctions.
Additionally, the Russian government has legalized the use of cryptocurrencies for cross-border payments, opening a new channel for international financing.
Prospects for New Economic Blocs
In the long term, this dynamic could accelerate the emergence of economic blocs operating on alternative principles, where cryptocurrencies play a pivotal role in capital flows. Establishing mutual technological trust around Bitcoin could pave the way for new forms of monetary cooperation, potentially redefining the currency balance of power on a global scale.
The current changes in Bitcoin usage in economic deals between China and Russia could lead to significant alterations in the international financial system, creating opportunities for new forms of economic partnership and collaboration.
