China, Russia Use Bitcoin for Energy Transactions, Says VanEck

• Bitcoin strengthens Russia-China trade.
• Cryptos facilitate trading under sanctions.
• Russia expands use of cryptos in energy.

In the current global trading scenario, China and Russia are standing out by adopting Bitcoin as a means of payment for energy agreements. This move comes at a time when Donald Trump is imposing new trade tariffs on China and the European Union, with announcements that have reverberated in the value of Bitcoin, which after a momentary drop from US$85.000 to US$81.000, has recovered, showing resilience by outperforming indexes such as the Nasdaq in several comparison periods.

According to investment company According to VanEck, these new tariffs could paradoxically benefit Bitcoin in the long run. A potential slowdown in the U.S. economy without a new bout of inflation could prompt the Federal Reserve to cut interest rates again, creating a favorable environment for Bitcoin, which historically performs well in conditions of high liquidity.

This interest is no longer theoretical. China and Russia have reportedly begun settling some energy transactions in Bitcoin and other digital assets. Bolivia has announced plans to import electricity using cryptocurrencies. And French power utility EDF is exploring the possibility of mining Bitcoin with surplus electricity currently exported to Germany. These are early signs that Bitcoin is evolving from a speculative asset into a functional monetary tool — especially in economies looking to bypass the dollar and reduce exposure to U.S.-led financial systems.

Additionally, there is a growing interest from nations in disassociating themselves from traditional financial systems dominated by the US, seeing cryptocurrencies as a neutral alternative for large-scale financial transactions, such as transactions involving oil and electricity.

Russia’s adoption of Bitcoin to circumvent international sanctions in its oil trade was highlighted in a Reuters report, indicating that it is using cryptocurrencies including Bitcoin, Ether and Tether to facilitate trade with countries such as China and India. This represents a significant shift, as even oil companies are beginning to use cryptocurrencies for real-world transactions.

Cryptocurrency payments between Russia and China can amount to tens of millions of dollars a month, processed by intermediaries who convert yuan into cryptocurrencies and then into rubles. The practice is not unique to Russia; Iran and Venezuela have also turned to cryptocurrencies to sustain their oil operations in the face of U.S. sanctions.

While Donald Trump in the White House continues to discuss sanctions policy and peace talks in Ukraine, Russia is also exploring traditional payment alternatives such as the UAE dirham, but the rise of cryptocurrencies as a viable option continues to gain ground.