China, India, and some sanctioned nations are increasingly using local currencies or alternatives in oil trade, challenging the petrodollar system. Still, the US dollar remains dominant thanks to its unmatched liquidity and reserve status.
The UAE warns it may switch to Chinese yuan for oil trade if denied US dollar swap line, highlighting de-dollarization trends. Bitcoin gains attention as a neutral reserve asset amid geopolitical risks.
The UAE is considering using the Chinese yuan in oil trade if access to dollar liquidity becomes restricted after regional disruptions. The move highlights growing concerns over energy settlement risks, de-dollarization trends, and renewed market interest in alternative reserve assets like Bitcoin.
The UAE warned of using Chinese yuan for oil transactions if dollar liquidity is restricted, following regional conflict impacts. This could reshape energy currency dynamics and boost Bitcoin as neutral reserve asset.
The UAE is considering using the Chinese yuan in oil trade if access to U.S. dollar liquidity becomes constrained after regional disruptions. The move highlights growing concerns over energy settlement diversification, de-dollarization trends, and renewed investor interest in bitcoin as a neutral reserve asset.
The UAE is evaluating the use of the Chinese yuan in oil trade if access to dollar liquidity becomes constrained amid regional disruptions. The move highlights rising diversification in energy settlement and renewed debate over de-dollarization and Bitcoin as a neutral reserve asset.
Tether said its trade finance division funded a $45 million crude oil deal in the Middle East using USDT, covering 670,000 barrels. The move signals the stablecoin issuer’s push into commodity trade finance and broader traditional financial markets.
Amid continuing sanctions linked to the war in Ukraine, Russia is increasingly using bitcoin and other cryptocurrencies in portions of its oil trade with China and India. According to Reuters, Russian oil firms and traders are using crypto-based settlement channels to bypass restrictions imposed by Western countries, with monthly transaction volumes already reaching tens of millions of dollars. The process reportedly involves Chinese or Indian buyers paying in yuan or rupees into an offshore account controlled by an intermediary, which then converts the fiat funds into crypto, transfers the assets to Russia, and ultimately converts them into rubles. While crypto payments still account for only a small share of Russia’s total oil trade, estimated at $192 billion, the practice is expanding as sanctions continue to bite. The report also notes that Iran and Venezuela have used similar crypto strategies, underscoring the censorship-resistant appeal of bitcoin and other digital assets for sanctioned states. In late 2024, Russia’s finance minister publicly supported the use of crypto in foreign trade, and the Bank of Russia recently proposed legalizing crypto investment for wealthy citizens. Even so, fiat currencies remain dominant in Russian oil trade, while geopolitical developments, including possible changes in U.S. policy under Donald Trump’s administration, may shape how far this shift goes.
