China&Russia Settle Energy Trades in Bitcoin as U.S. Tariffs Reach 104% on China

[yhiaali3]

Bitcoin is increasingly being used in international trade, particularly by countries looking to avoid U.S.-controlled financial systems. Russia and China have reportedly used Bitcoin to settle energy transactions. Bolivia has announced plans to pay for imported electricity using cryptocurrency, and France’s EDF is considering Bitcoin mining with surplus power usually sent to Germany. These moves reflect a growing interest in using digital assets for cross-border trade as economic tensions continue to rise.

On April 2, the Trump administration announced tariffs of up to 104% on Chinese imports. In response, China imposed retaliatory tariffs of up to 84% on U.S. goods, starting on April 10. The trade war has triggered instability in traditional markets, pushing investors to consider alternatives like Bitcoin and gold. Analysts say Bitcoin is attractive in this climate because it’s not tied to any government and can’t be manipulated like national currencies.

Bitwise CEO Hunter Horsley explained that in times of uncertainty, investors want to avoid both U.S. and other nations’ assets due to fears of currency devaluation. He said Bitcoin offers a unique solution—it can’t be debased and is easy to access and control. VanEck’s Matthew Sigel added that Bitcoin is becoming more than just a speculative asset, with real-world use cases like international trade settlements starting to emerge.

https://finance.yahoo.com/news/china-russia-settle-energy-trades-012147370.html

It's good to see that the tariff war between the US and China has shifted in Bitcoin's favor.
Now, with Bitcoin firmly established as a secure asset and used by governments to settle cross-border international payments, I believe we're witnessing a new shift in the Bitcoin era. What do you think?

[dave_strider]

Still, we are under the influence of the current situation, even though BTC profits from it in the long run being an alternative for everyone eager to seek one.

I do hope this 'Pause' that was taken by the US will not be halted half way through..

[Charles-Tim]

United States first increased the tariff to 84% but because of China retaliation, it increased it to104%. China continued to retaliate and it increased the tariff to 125%.

It is good to see countries using bitcoin for global trade. I hope this will continue. Countries need not to depend on fiat. Decentralized coin like bitcoin is better than fiat that is easily controlled by the United States.

[Azharul]

United States first increased the tariff to 84% but because of China retaliation, it increased it to104%. China continued to retaliate and it increased the tariff to 125%.

It is good to see countries using bitcoin for global trade. I hope this will continue. Countries need not to depend on fiat. Decentralized coin like bitcoin is better than fiat that is easily controlled by the United States.

China and Russia also increase 104% tariffs in this time, which will be negative impact for cryptocurrency world. So in this time i think that your opinion is appropriate. We obviously know that when America selected tariff to China, then i am also understand it will be very tariff war for this two powerful countries.

In this reason we also saw that China increase 125% tariff for them. I also believe that increase this tariff economic conditions will be slightly disabled for that's country. So my personal opinion, i could not accepted in increasing tariff issues in the worldwide.

[ABCbits]

It's good to see both government agree to use Bitcoin as payment method. But aside from volatility, i wonder whether it's middle ground between using Yuan and Ruble.

[Bobcrypto]

It's good to see both government agree to use Bitcoin as payment method. But aside from volatility, i wonder whether it's middle ground between using Yuan and Ruble.

Both countries wouldn't have agreed on either the Yuan or Ruble as a settlement options for the transaction, enhance they went for bitcoin knowing fully well that exchange rates between Yuan and rubble will be difficult to arrive on a fixed settlement rates.
Again, both countries are seeking to be a dominant economic and political power in the world, unfortunately, the US wouldn't allow them. This is my opinion.

[Stompix]

But aside from volatility, i wonder whether it's middle ground between using Yuan and Ruble.

The USD!
And again we have a paid article by some crypto blogger telling us how every country wants to deal in Bitcoin for whatever reason...

Not, let's look at the advantages of Russia and China doing so, first China needs to pay in Bitcoin for the excess energy, so , they need to buy Bitcoin with their yuans, so how is that different from buying euros and usd or even rubles, then Russia receives Bitcoin which obviously they need to convert to rubles to pay for their government expenditure, so why would both countries go though all this hassle when they could simply deal in their own currencies and avoid a currency that goes up and down by 10% based on what their biggest enemy the US does?

Both countries wouldn't have agreed on either the Yuan or Ruble as a settlement options for the transaction, enhance they went for bitcoin knowing fully well that exchange rates between Yuan and rubble will be difficult to arrive on a fixed settlement rates.

So you're telling me the exchange rate between bitcoin and the ruble and the yuan is more stable than the exchange rate between the yuan and the ruble?

[MrSpasybo]

It's good to see that the tariff war between the US and China has shifted in Bitcoin's favor.
Now, with Bitcoin firmly established as a secure asset and used by governments to settle cross-border international payments, I believe we're witnessing a new shift in the Bitcoin era. What do you think?

I think this energy trade being settled in crypto is to avoid sanctions for Russia due to their invasion of Ukraine. China doesn't have a big enough incentive to use crypto for payments, especially since the tariff war isn't a direct cause for this action.

China is looking to expand the influence of the e-CNY to build a global position, but they won't find a better market than the US. BTC isn't the solution right now. China needs another way to negotiate with the US to reach a mutually beneficial agreement, while also finding ways to gain more economic colonies like Vietnam, Laos, Cambodia & many African countries.

[yhiaali3]

Not, let's look at the advantages of Russia and China doing so, first China needs to pay in Bitcoin for the excess energy, so , they need to buy Bitcoin with their yuans, so how is that different from buying euros and usd or even rubles, then Russia receives Bitcoin which obviously they need to convert to rubles to pay for their government expenditure, so why would both countries go though all this hassle when they could simply deal in their own currencies and avoid a currency that goes up and down by 10% based on what their biggest enemy the US does?

I think the issue isn't about the exchange rate, and it's not that China and Russia want cheaper payments. These are retaliatory measures against the US dollar in response to US tariffs. I believe Russia and China's greater desire is to weaken the dollar. as I understand from this quote in the same article:

At the same time, the U.S. dollar is weakening, and foreign investors are pulling back from U.S. assets. Since January, the U.S. Dollar Index has dropped by 6.1%. In 2024, foreigners held about $62 trillion in U.S. assets, but that figure is now falling. China has also told state banks to reduce their dollar reserves, and Russia has long sought to conduct trade outside of U.S. systems.

I believe this is the real reason why Russia and China are moving to settle their international payments in Bitcoin rather than dollars.

[Mia Chloe]

United States first increased the tariff to 84% but because of China retaliation, it increased it to104%. China continued to retaliate and it increased the tariff to 125%.
It is good to see countries using bitcoin for global trade. I hope this will continue. Countries need not to depend on fiat. Decentralized coin like bitcoin is better than fiat that is easily controlled by the United States.

Well, although it seems like a good thing you still can't just ignore its effect on the market so just this couple of days when us and china were having this particular tariff war of sorts, price movement was highly unpredictable and that wasn't really good for traders too.

You just can't ignore the effects of fundamental factors like these on the market and the fact is the volume it affects is way huge and sometimes we pay the price...

[yhiaali3]

I think this energy trade being settled in crypto is to avoid sanctions for Russia due to their invasion of Ukraine. China doesn't have a big enough incentive to use crypto for payments, especially since the tariff war isn't a direct cause for this action.

Not exactly. I don't think Russia and China are using Bitcoin to evade US sanctions, but rather to weaken the dollar and undermine confidence in it while increasing confidence in other assets like Bitcoin and gold.
I mentioned in my previous post in the quote:

China has also told state banks to reduce their dollar reserves, and Russia has long sought to conduct trade outside of US systems.

I believe that in the context of the war sparked by Trump, China and Russia will attempt not only to respond by raising tariffs, but also by other means, such as using assets other than the dollar to weaken it.

[Kemarit]

It's good to see both government agree to use Bitcoin as payment method. But aside from volatility, i wonder whether it's middle ground between using Yuan and Ruble.

Both countries wouldn't have agreed on either the Yuan or Ruble as a settlement options for the transaction, enhance they went for bitcoin knowing fully well that exchange rates between Yuan and rubble will be difficult to arrive on a fixed settlement rates.
Again, both countries are seeking to be a dominant economic and political power in the world, unfortunately, the US wouldn't allow them. This is my opinion.

Of course, it's going to be a war, every one of them, China, Russia and the US for supremacy. But I do think that the US could still have the upper hand with their USD and I doubt that Yuan or Ruble will be the dominant currency in the world.

For Bitcoin, let's see the effects, maybe this two countries will settle along the way with Bitcoin as the middle ground, but still they will have to exchange their Bitcoin not unless they want to HODL on it and become a national reserves for them.

[0t3p0t]

Seems this is the beginning of countries adopting Bitcoin to be used for trades and this benefits those who have massive Bitcoin holdings because this will surely change the way traditional trades and investments in the future. Countries with trust issues, sanctions or other reasons prefer Bitcoin as a currency used because it is decentralized so no one can freeze it or control it.

[target]

Those are just from Russia and China exchange though.What about the other countries particularly Iran and Saudi that are heavily exporting gas and oil, they too should have been adopting BTC like accepting BTC with their international trades. But we haven't heard of them doing so.

IF US wants adoption to every corner, they should have sanction all the OPEC countries and encourage them to use BTC. 

[yhiaali3]

Those are just from Russia and China exchange though.What about the other countries particularly Iran and Saudi that are heavily exporting gas and oil, they too should have been adopting BTC like accepting BTC with their international trades. But we haven't heard of them doing so.

IF US wants adoption to every corner, they should have sanction all the OPEC countries and encourage them to use BTC. 

Although it sounds like a joke, this is actually happening. Iran is secretly using Bitcoin to evade US sanctions, as I read in one report. But I haven't heard of Iran using Bitcoin to settle oil payments yet, but perhaps it will in the near future.

As for Saudi Arabia, its relationship with the United States is very good, and there are no international sanctions, so I don't think they are considering using Bitcoin at the moment.