Geopolitical shifts fuel crypto payments for oil
China and Russia are settling some energy trades using cryptocurrencies like Bitcoin, Ether, and Tether instead of U.S. dollars. According to VanEck, this shift is part of a broader trend where global players are turning to crypto to bypass U.S. sanctions and financial oversight.
Russia reportedly began using crypto for oil trades with China and India, marking a notable development since the country legalized crypto for international trade last year. Payments are routed through intermediaries, with Chinese buyers paying in yuan that is converted to crypto and sent to Russia.
Bitcoin gains traction as dollar weakens
VanEck analysts argue that the global response to Trump’s new tariffs could make Bitcoin more attractive as a neutral settlement tool. If the U.S. economy slows and interest rates drop, Bitcoin could benefit from a return to a looser monetary environment.
Meanwhile, countries like Iran and Venezuela have long used crypto to navigate sanctions, and Russia’s increased use of digital assets may accelerate this trend.
Alternative systems grow amid economic realignment
The move aligns with broader global efforts to reduce reliance on U.S. financial infrastructure. VanEck noted that if the dollar declines further, Bitcoin could solidify its position as a strategic hedge for nations avoiding Western systems.
