According to VanEck’s report, China and Russia have started to use Bitcoin to get around U.S. control over global money systems. These countries are now starting to use Bitcoin not just to hold value but to actually pay for things in the global market as trade problems and sanctions are growing.
A Shift from Theory to Practice
Something that used to be just a topic of discussion for experts is now becoming real. The VanEck reports say that the U.S. has made use of its power over U.S. dollars to punish the countries by putting sanctions on them, raising tariffs, and blocking their access to money. Because of this, many countries started to question whether they should keep depending so much on the U.S. dollar.
In one clear example, VanEck confirmed that China and Russia have already started to use Bitcoin for payment of some energy traders. This supports CryptoSlate’s earlier report, which said that Russian oil Was using Cryptocurrencies to make deals with China and India. Which allowed them to effectively avoid Western sanctions.
Macro analyst Jonathan Handel shared on X that things changed in 2022 when the U.S. frizzed Russia’s money and cut it off from the SWIFT payment system. He said that this was a major turning point and showed other countries what might happen if they keep on depending on the US dollar.
Bitcoin for Oil, Electricity, and Sanctions Workarounds
This shift is not just limited to big countries. Bolivia has recently said that it is planning to use Cryptocurrency for making payments for imported electricity. Meanwhile, a French government-backed energy company, EDF, has been looking for ways to use extra it’s electricity for Bitcoin mining.
At the same time, Russia has officially approved using digital assets like Bitcoin to trade internationally, which is a big shift. These new laws show that countries are turning to crypto to avoid relying on the US dollar and their financial system. Hence, both China and Russia will continue to trade in bitcoins instead of dollars for now.
Trade Wars Fueling the Trend
The move to break away from the U.S. financial system got stronger when former president Donald Trump introduced major tariffs of up to 125% on goods from China. In response to this, China quickly raised its own tariffs against the U.S. This caused uncertainty and financial instability in the market.
One of the Reddit users in the r/BitcoinMarkets forum said that Bitcoin is not just a way to protect against inflation but now it has started to become a hedge from the U.S. system.
Another user in X also shared a similar view, saying that this is not just decentralization, but now it’s about moving away from the U.S. dollar. It’s just that Russia and China have taken the first step by using Bitcoin.
Implications for Global Finance
Many countries are now using Bitcoin to trade globally to avoid U.S. sanctions and to avoid their dependence on the U.S. dollar. Recent more of China and Russia had raised a question of Dollars dominance.
Like traditional currencies, Bitcoin can not be blocked or sized by foreign governments. This made Bitcoin a safer option during the global tension.
Matthew Sigel, the Head of VanEck Digital Assets Research, said that Bitcoin is trying to help countries build a new kind of financial system that does not depend on U.S.-controlled banks.
Conclusion
Countries like China and Russia have now started to use Bitcoin to avoid U.S. control. Many countries are now looking at crypto as a safer option and independent way of doing business, which is away from the U.S. dollar system.
FAQs
1. Which countries will use Bitcoin to pay for trades?
China and Russia are using Bitcoin to pay trades instead of US dollars.
2. Who confirmed this trade shift?
VanEck company confirms China and Russia trade shift news.
3. Which type of goods are the countries trading using Bitcoin?
Energy goods like oil and electricity.
Glossary
Tariff – A tax that is added to imported goods.
SWIFT – A system banks use to send money between countries.
Energy Goods – Products like oil, gas, or electricity.
EDF – A big French energy company
Sources
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