Russia and China Use...

Russia and China Use Bitcoin to Circumvent Sanctions in Oil Trades

By José Oramas April 11, 2025 In Bitcoin, China, Russia

Black oil barrel with golden bitcoin symbol, digital energy trade. — Source:AdobeStock

VanEck confirms Russia is using Bitcoin, Ether, and Tether to settle oil trades with China and India.
VanEck’s Matthew Sigel sees this as early evidence of Bitcoin becoming a global trade tool, especially for nations seeking to reduce reliance on the US dollar.
A weakening dollar and Trump’s tariff policies, according to the analyst, may accelerate de-dollarisation, fueling Bitcoin’s role as a hedge and possibly igniting a new crypto bull run.

Bitcoin’s evolution from a speculative asset to an international trade tool might be further along than most think—especially if the latest claims from VanEck’s head of digital assets research are accurate.

In a blog post published on April 8, VanEck’s Matthew Sigel said that China and Russia have already started settling some energy transactions in Bitcoin and other digital assets, calling it an early signal of a shift away from U.S. dollar dominance in global trade.

“They are not the only two nations trying to de-dollarize during Donald Trump’s trade war,” Sigel added, pointing to Bolivia’s plans to import electricity using crypto and French energy giant EDF’s experiments with mining Bitcoin using surplus power.

Sigel wrote:

These are early signs that Bitcoin is evolving from a speculative asset into a functional monetary tool. Particularly in economies looking to bypass the dollar and reduce exposure to US-led financial systems.

Matthew Sigel, VanEck

Seems like Russia and China are late to the game, as heavily-sanctioned countries like Venezuela and Iran have already been bypassing US sanctions using alternative assets, and yes, that includes Bitcoin.

The Weaker the Dollar, the Stronger the Case for Bitcoin

A declining dollar isn’t just good news for gold anymore. According to Sigel, dovish shifts in Fed policy and rising liquidity historically work in Bitcoin’s favor.

Any sustained dollar weakness may bolster the Bitcoin-as-hedge narrative, particularly in an environment of geopolitical fragmentation.

Matthew Sigel, VanEck

He pointed to the US Dollar Index (DXY) —which measures the dollar against a basket of major currencies—as a key metric. The DXY has dropped more than 6.83% since January and currently sits around 101.1.

The backdrop to all of this is Trump’s latest tariff blitz, which has roiled markets and widened the cracks in the already strained global trade order.

Analysts told Reuters in late March that the administration’s approach is pushing U.S. allies—especially in Europe—toward reducing their reliance on the dollar altogether.

Similarly, Arthur Hayes, co-founder of BitMEX, believes this could ignite another crypto bullrun, given that Trump’s tariffs could devalue China’s yuan, meaning that investors would run to currencies like Bitcoin.