China and Russia Have Started to Settle Some Trade Deals Using Bitcoin

According to a report by VanEck, China and Russia have started to settle some trade deals using Bitcoin.

China and Russia have begun settling some trade deals using Bitcoin, according to a report by VanEck.

The two BRICS countries have already signed agreements to pay for energy transactions in Bitcoin and other cryptocurrencies, said Matthew Sigel, head of digital asset research at VanEck.

This scenario is set against a backdrop of growing global trade tensions, which are also exacerbated by the Trump administration’s tariff policy.

China and Russia are trying to decrease their dependence on traditional dollar-bound financial systems by turning to alternative instruments such as cryptocurrencies, with the two countries already engaging in bilateral exchanges without using the US dollar.

Sigel also noted that Bolivia has announced plans to import electricity using cryptocurrencies, and these developments are indications of a change in the use of Bitcoin.

The use of cryptocurrency is transforming from a speculative asset to a practical monetary tool, especially in economies seeking to bypass the US dollar and reduce exposure to US financial systems.

‘Bitcoin is evolving from a speculative asset to an effective monetary tool, especially for economies seeking to reduce dependence on the U.S. dollar and U.S.-dominated financial systems,’ said Sigel.

The adoption of cryptocurrencies like Bitcoin for international trade could mark a major shift in the global financial order.

Recently, investment experts have been turning their attentions to safe haven assets such as cryptocurrencies and precious metals due to the recent economic difficulties.

The U.S. dollar has lost about 6.1 percent of its value since January 2025, a figure that denotes concerns about global economic stability.

Reserves of U.S. assets held by foreign investors had reached about $62 trillion in 2024, but these flows are now falling sharply as investors seek alternatives in global markets.

This development leads to an increasing focus on gold and cryptocurrencies as possible alternatives to the traditional monetary system, while the U.S. faces an unstable economic environment.

Imaru Casanova, another analyst at VanEck, noted that gold could be a major asset during an economic downturn.

“Gold and gold equities should benefit from the increased level of risk present in the global economy and the international financial system,” Casanova said.

“The unpredictability of economic policies and increased market volatility could strengthen gold’s attractiveness as a preferred safe haven asset during periods of global uncertainty.”

A key element of the recent China-Russia pact lies in the different approach of the U.S. Unlike Russia, which was spared from the tariffs sought by the Trump administration, China had new tariffs imposed.

Therefore, China instructed all public banks to decrease the purchase of U.S. dollars from their reserves, taking a further step towards independence from the U.S. currency.