Donald Trump has added fuel to the fire by imposing an additional 104% tariff on China. This aggressive move has escalated a global Tariff war, and China has already hinted that it won’t bow down to Trump’s threats and blackmailing tactics.
According to the latest reports, Russia and China have turned to Bitcoin and other cryptocurrencies for settling energy trades.
Matthew Sigel, head of digital assets research at VanEck, explained how the latest tariff announcements impact Bitcoin and digital assets. He also revealed that Bitcoin is now leveraged by countries to settle their trades.
According to Sigel, Trump’s tariff package targeting China and the EU reignited global trade tensions and escalated the risk of disintegration of global financial systems. Now, seeing the risk, countries are considering alternatives to settle their trade transactions and are turning to cryptocurrencies.
Sigel stated, “China and Russia were recently revealed to be settling some energy transactions using Bitcoin and other digital assets—just as we anticipated.” He added that Bolivia has also announced the utilisation of cryptocurrencies in their energy imports. Moreover, in Europe, French utility EDF will utilize their surplus energy to mine Bitcoin.
The situation highlights how the global perspective is changing toward cryptocurrencies. Now everyone sees Bitcoin and cryptocurrencies as hedge tools and a currency to settle their global trades. This was also witnessed recently when uncertainties arose in the global market including NASDAQ and DOW fell significantly but Bitcoin stabilized and outperformed equities indicating global demand.
However, most of the countries are still late as Trump already accelerated their efforts in adopting crypto and blockchain. Trump already added Bitcoin and other digital assets to the Strategic U.S. Reserve, made a separate department for crypto and more. These efforts are strategically planned as if dollar-weak then they will dominate through cryptocurrencies.
Also Read: Bitcoin Will Be the Winner in Tariff War: Bitwise CIO
