Bitcoin Is an Alternative Global Currency Amid China’s De-Dollarization, Here’s the Explanation!

Updated

April 17, 2025

Gambar Bitcoin Is an Alternative Global Currency Amid China’s De-Dollarization, Here’s the Explanation!

Jakarta, Pintu News – China has taken a big step by reducing dependence on the US dollar, prompting a global trend of looking for alternatives. Bitcoin is now emerging as a viable contender.

With increasing adoption by major countries, these digital currencies offer new opportunities in international trade and global geopolitics.

Check out the full news below!

Why Countries are Turning to Bitcoin

China and Russia have started using Bitcoin (BTC) to settle energy transactions, showing confidence in the digital currency as an effective means of payment.

VanEck’s Matthew Sigel emphasizes that Bitcoin (BTC) adoption by sovereign nations is increasing due to the need for a neutral payment system. This becomes especially relevant as sanctions from Western countries increase, prompting those countries to seek alternatives to the US dollar.

The use of Bitcoin (BTC) is not just limited to sanctioned countries. For example, India has secured deals for oil purchases with the Indian Rupee (INR) and conducts trade with Malaysia using the same currency.

This initiative shows that Bitcoin (BTC) and other digital currencies have great potential to increase a country’s economic independence.

Challenges Facing Bitcoin

While Bitcoin (BTC) offers many advantages, several barriers remain before it can be widely accepted as a global means of payment. High price volatility and an evolving regulatory framework are some of the main challenges.

In addition, the infrastructure supporting Bitcoin (BTC) still needs to mature, and cyclical hype often affects its short-term adoption. Due to their low volatility, stablecoins, such as Tether and USD Coin , currently dominate cross-border payments.

These stablecoins are preferred for international transactions and fund transfers, while Bitcoin (BTC) is more often used as a store of value or speculative asset. This suggests that Bitcoin (BTC) still needs to overcome some shortcomings before it can effectively compete with stablecoins.

Also read: 5 Memecoins that rise when the market crashes in April 2025, FART is one of them?

The Future of Bitcoin in the Global Financial System

Despite the challenges, Bitcoin’s (BTC) unique characteristics, such as limited supply, decentralised governance, and cross-border accessibility, make it attractive as a currency alternative.

Kevin Lee of Gate.io believes that Bitcoin (BTC) is not meant to replace the traditional fiat system, but as an alternative for various business use cases, especially for diversification and long-term value preservation strategies.

Given the geopolitical shifts and the inherent characteristics of Bitcoin (BTC), room is created for wider adoption as an alternative to the US dollar and even as a potential reserve asset.

However, significant obstacles remain, including scalability, volatility, regulatory barriers, stablecoin competition, and ensuring network security.

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