China’s recent directive for its state-owned banks to decrease reliance on the US dollar has amplified a growing trend among countries seeking alternatives to the dominant reserve assets. In some instances, Bitcoin has emerged as a viable competitor.

BeInCrypto spoke with experts from VanEck, CoinGecko, Gate.io, HashKey Research, and Humanity Protocol to understand Bitcoin’s rise as an alternative to the US dollar and its potential for greater influence in global geopolitics.

The Push for De-Dollarization

Since the 2008 global financial crisis, China has gradually reduced its reliance on the US dollar. The People’s Bank of China (PBOC) has now instructed state-owned banks to reduce dollar purchases amid the heightened trade war with US President Donald Trump.

China is among many nations seeking to lessen its dependence on the dollar. Russia, like its southern neighbor, has received an increasing number of Western sanctions– especially following its invasion of Ukraine.

The United States, the European Union, the United Kingdom, and other allies imposed unprecedented international sanctions on Russia, targeting its central bank and major financial institutions and restricting access to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) for some financial institutions.

In response, Russia halted trading of US dollars and euros on the Moscow Stock Exchange (MOEX). Recently, BeInCrypto also reported that Russia has been quietly using Bitcoin for international trade to bypass sanctions.

Furthermore, Rosneft, a major Russian commodities producer, has issued RMB-denominated bonds, indicating a shift towards RBM, the Chinese currency, and a move away from Western currencies due to sanctions.‬

This global shift away from predominant reserve currencies is not limited to countries affected by Western sanctions. Aiming to increase the Rupee’s international use, India has secured agreements for oil purchases in Indian Rupee (INR) and trade with Malaysia in INR.

The country has also pursued creating a local currency settlement system with nine other central banks.

As more nations consider alternatives to the US dollar’s dominance, Bitcoin has emerged as a functional monetary tool that can serve as an alternative reserve asset. 

Why Nations Are Turning to Bitcoin for Trade Independence

Interest in using cryptocurrency for purposes beyond international trade has also grown. In a notable development, China and Russia have reportedly settled some energy transactions using Bitcoin and other digital assets.

“Sovereign adoption of Bitcoin is accelerating this year as demand grows for‬‭ neutral payments rails that can circumvent USD sanctions,” Matthew Sigel, Head of Digital Assets Research at VanEck, told BeInCrypto. 

Two weeks ago, France’s Minister of Digital Affairs proposed using the surplus production of EDF, the country’s state-owned energy giant, to mine Bitcoin.

Last week, Pakistan announced similar plans to allocate part of its surplus electricity to Bitcoin mining and AI data centers.

Meanwhile, on April 10, New Hampshire’s House passed HB302, a Bitcoin reserve bill, by a 192-179 vote, sending it to the Senate. This development makes New Hampshire the fourth state, after Arizona, Texas, and Oklahoma, to have such a bill pass a legislative chamber. 

If HB302 is approved by the Senate and signed into law, the state treasurer could invest up to 10% of the general fund and other authorized funds in precious metals and specific digital assets like Bitcoin.

According to industry experts, this is only the beginning.

VanEck Predicts Bitcoin to Become a Future Reserve Asset

Sigel predicts Bitcoin will become a key medium of exchange by 2025 and, ultimately, one of the world’s reserve currencies. 

His forecasts suggest Bitcoin could settle 10% of global international trade and 5% of global domestic trade. This scenario would lead to central banks holding 2.5% of their assets in BTC. 

According to him, China’s recent de-dollarization will prompt other nations to follow suit and lessen their reliance on the US dollar.

“China’s de-dollarization efforts are already having second- and third-order effects that create‬‭ opportunities for alternative assets like Bitcoin. When the world’s second-largest economy‬ actively reduces its exposure to US Treasuries and promotes cross-border trade in yuan or‬ ‭through mechanisms like the mBridge project, it signals to other nations—especially those with‬‭ strained ties to the West—that the dollar is no longer the only game in town,” Sigel said. ‭

For Zhong Yang Chan, Head of Research at CoinGecko‬, these efforts could prove catastrophic for the United States’ dominance. 

“Broader de-dollarization efforts by China, or other major economies, will threaten the status of‬ ‭ the dollar’s global reserve currency status. This could have [a] profound impact on the US and its‬ ‭ economy, as this would lead to nations reducing their holdings of US treasuries, which the US‬ ‭ relies on to finance its national debt,” he told BeInCrypto.

However, the strength of the US dollar and other dominant currencies has already shown signs of weakening.

A General Wave of Currency Decline

Sigel’s research shows that the four strongest global currencies—the US dollar, Japanese yen, British pound, and European euro—have lost value over time, particularly in cross-border payments.

The decline of these currencies creates a void where Bitcoin can gain traction as a key alternative for international trade settlements.

“This shift isn’t purely about promoting the yuan. It’s also about minimizing vulnerability to‬‭ US sanctions and the politicization of payment rails like SWIFT. That opens the door for‬‭ neutral, non-sovereign assets—especially those that are digitally native, decentralized, and‬‭ liquid,” Sigel added. 

This lack of national allegiance also sets Bitcoin apart from traditional currencies.

Bitcoin’s Appeal: A Non-Sovereign Alternative

Unlike fiat money or central bank digital currencies (CBDCs), Bitcoin doesn’t respond to any one nation, which makes it appealing to some countries.

For Terence Kwok, CEO and Founder of Humanity Protocol, recent geopolitical tensions have heightened this belief.

“Trust‬‭ in‬‭ traditional‬‭ financial‬‭ infrastructure‬‭ is‬‭ eroded‬‭ during‬‭ geopolitical‬‭ standoffs.‬‭ Bitcoin,‬‭ with‬‭ its‬‭ transparent‬‭ ledger‬‭ and‬‭ decentralized‬‭ governance,‬‭ offers‬‭ a‬‭ compelling‬‭ alternative‬‭ for‬‭ value‬‭ storage‬‭ and‬‭ peer-to-peer‬‭ settlement,‬‭ especially‬‭ where‬‭ neutral,‬‭ non-sovereign‬‭ options‬‭ are‬‭ preferable.‬‭ In‬‭ that‬‭ sense,‬‭ geopolitical‬‭ tension‬‭ can‬‭ inadvertently‬‭ catalyze‬‭ innovation‬‭ and‬‭ adoption‬‭ in decentralized finance,” Kwok told BeInCrypto.

Because Bitcoin’s supply is limited, it provides a more secure option for nations whose local currency loses value through inflation.

“‭Bitcoin,‬‭ due‬‭ to‬‭ its‬‭ scarcity‬‭ and‬‭ decentralized‬‭ nature,‬‭ is‬‭ completely‬‭ different‬‭ from‬‭ the‬‭ centralized‬‭ fiat‬‭ currency‬‭ system‬‭ and‬‭ is‬‭ not‬‭ affected‬‭ by‬‭ changes‬‭ in‬‭ monetary‬‭ policy.‬‭ Therefore,‬‭ it‬‭ can‬‭ be‬‭ used‬‭ as‬‭ a‬‭ hedging‬‭ tool‬‭ to‬‭ cope‬‭ with‬‭ the‬‭ depreciation‬‭ of‬‭ fiat‬‭ currencies‬‭ or‬‭ geopolitical‬‭ risks.‬‭ Especially‬‭ in‬‭ the‬‭ context‬‭ of‬‭ rising‬‭ inflation‬‭ or‬‭ challenges‬‭ to‬‭ the‬‭ dominance‬‭ of‬‭ the‬‭ US‬‭ dollar,‬‭ allocating‬‭ some‬‭ Bitcoin‬‭ can‬‭ help‬‭ diversify‬‭ investment‬‭ risks and provide investors with more robust asset protection,” ‭Kevin Guo, Director of HashKey Research‬, added to the conversation. 

For these same reasons, experts don’t expect Bitcoin to replace fiat currencies fully but rather provide a vital alternative for certain cases. 

A Replacement or an Alternative?

While Bitcoin offers several advantages over traditional currencies, Gate.io’s Kevin Lee doesn’t foresee its eventual adoption causing a complete overhaul of the currency reserve system.

“Bitcoin‬‭ is‬‭ increasingly‬‭ being‬‭ recognized‬‭ for‬‭ its‬‭ unique‬‭ technological‬‭ characteristics,‬‭ such‬‭ as‬‭ fixed‬‭ supply,‬‭ decentralized‬‭ governance,‬‭ and‬‭ borderless‬‭ accessibility.‬‭ However,‬‭ I‬‭ don’t‬‭ believe‬‭ it‬‭ is‬‭ meant‬‭ to‬‭ replace [the]‬‭ traditional‬‭ fiat‬‭ system,‬‭ but‬‭ rather‬‭ an‬‭ alternative‬‭ to‬‭ it‬‭ for‬‭ various‬‭ business‬‭ use‬‭ cases,‬‭ particularly‬‭ for‬‭ diversification‬‭ and‬‭ long-term‬‭ value‬‭ preservation strategies,” Lee told BeInCrypto. 

Guo agreed with this last point, adding that Bitcoin will be more appealing case-by-case.

“Countries‬‭ may‬‭ selectively‬‭ adopt‬‭ Bitcoin‬‭ based‬‭ on‬‭ their‬‭ own‬‭ economic‬‭ needs,‬‭ but‬‭ its‬‭ application‬‭ areas‬‭ are‬‭ mainly‬‭ concentrated‬‭ in‬‭ niche‬‭ markets‬‭ such‬‭ as‬‭ cross-border‬‭ remittances,‬‭ circumventing‬‭ sanctions,‬‭ and‬‭ hedging‬‭ inflation,” he said.

Bitcoin must first address several of its shortcomings before it can become truly competitive in the long run.

What Challenges Still Face Bitcoin’s Wider Adoption?

Due to its relatively new status and lack of full development, Bitcoin suffers from shortcomings that prevent mass adoption.

“‬‭As‬‭ with‬‭ any‬‭ emerging‬‭ asset‬‭ class,‬‭ Bitcoin‬‭ faces‬‭ inherent‬‭ challenges,‬‭ including‬‭ market‬‭ volatility,‬‭ evolving‬‭ regulatory‬‭ frameworks,‬‭ infrastructure‬‭ maturity,‬‭ and‬‭ cyclical‬‭ hypes.‬‭ These‬‭ factors‬‭ may‬‭ impact‬‭ its‬‭ short-term‬‭ adoption‬‭ pace,” Lee explained.

To that point, Kwok added:

“Bitcoin’s‬‭ price‬‭ swings‬‭ make‬‭ it‬‭ less‬‭ viable‬‭ for‬‭ day-to-day‬‭ transactions‬‭ or‬‭ as‬‭ a‬‭ primary‬‭ reserve‬‭ asset‬‭ today.‬‭ Furthermore,‬‭ if‬‭ major‬‭ powers‬‭ enforce‬‭ strict‬‭ capital‬‭ controls‬‭ or‬‭ implement‬‭ hostile‬‭ crypto‬‭ policies,‬‭ it‬‭ could‬‭ slow‬‭ down‬‭ adoption‬‭ despite‬‭ broader‬‭ macro‬‭ trends‬‭ in‬‭ its favor.‬”

Meanwhile, there’s the competitive advantage of stablecoins, which currently dominate cross-border payments.

“Crypto‬‭ assets‬‭ represented‬‭ by‬‭ US‬‭ dollar‬‭ stablecoins‬‭ (such‬‭ as‬‭ USDT‬‭ and‬‭ USDC)‬‭ are‬ ‭ rapidly‬‭ occupying‬‭ the‬‭ main‬‭ market‬‭ of‬‭ cross-border‬‭ payments‬‭ and‬‭ blockchain‬‭ transactions.‬ Stablecoins have‬‭ low‬‭ volatility‬‭ due‬‭ to‬‭ their‬‭ peg‬‭ (mostly‬‭ to‬‭ the‬‭ US‬‭ dollar),‬‭ making‬‭ them‬‭ the‬‭ preferred‬‭ tool‬‭ for‬‭ international‬‭ transactions‬‭ and‬‭ fund‬‭ transfers,‬‭ while‬‭ Bitcoin‬‭ is‬‭ more‬‭ often‬‭ used‬‭ as‬‭ a‬‭ store‬‭ of‬‭ value‬‭ or‬‭ speculative‬‭ asset,” Guo, Director of HashKey Research‬ told BeInCrypto. 

The Bitcoin network has also experienced problems that have exacerbated global demand.

Bitcoin Network Under Strain

Since the beginning of the year, Bitcoin has experienced a significant slowdown in network activity, despite the asset’s bullish performance.

“The‬‭ usage‬‭ rate‬‭ of‬‭ the‬‭ Bitcoin‬‭ network‬‭ is‬‭ declining,‬‭ and‬‭ its‬‭ on-chain‬‭ transaction‬‭ fees‬‭ have‬‭ dropped‬‭ to‬‭ the‬‭ lowest‬‭ point‬‭ since‬‭ 2012,‬‭ indicating‬‭ that‬‭ network‬‭ activity‬‭ is‬‭ gradually‬‭ decreasing,” Guo said.

Recent data confirms this. The number of Bitcoin transactions has fallen significantly since the last quarter of 2024. Bitcoin registered over 610,684 transactions in November, but that number dropped to 376,369 in April, according to Glassnode data.

The number of Bitcoin active addresses paints a similar picture. In December, the network had nearly 891,623 addresses. Today, that number stands at 609,614.

This decline suggests reduced demand for its blockchain in terms of transactions, usage, and adoption, meaning fewer people are actively using it for transfers, business, or Bitcoin-based applications.

Meanwhile, the Bitcoin network must also ensure its infrastructure is efficient enough to meet global demand. 

Can Bitcoin Scale for Global Use?

In 2018, Lightning Labs launched the Lightning Network to reduce the cost and time required for cryptocurrency transactions. Currently, the Bitcoin network can only handle around seven transactions per second, while Visa, for example, handles around 65,000.

“If‬‭ expansion‬‭ solutions‬‭ (such‬‭ as‬‭ the‬‭ Lightning‬‭ Network)‬‭ fail‬‭ to‬‭ become‬‭ popular,‬‭ Bitcoin’s‬‭ ability‬‭ to‬‭ process‬‭ only‬‭ about‬‭ 7‬‭ transactions‬‭ per‬‭ second‬‭ will‬‭ be‬‭ difficult‬‭ to‬‭ support‬‭ global‬‭ demand.‬‭ At‬‭ the‬‭ same‬‭ time,‬‭ as‬‭ Bitcoin‬‭ block‬‭ rewards‬‭ are‬‭ gradually‬‭ halved,‬‭ the‬‭ decline‬‭ in‬‭ miners’ income may threaten the long-term security of the network,” Guo, Director of HashKey Research‬ explained.

While the confluence of geopolitical shifts and Bitcoin’s inherent characteristics undeniably create a space for its increased adoption as an alternative to the US dollar and even a potential reserve asset, significant hurdles remain. 

Achieving mainstream Bitcoin adoption hinges on overcoming scalability, volatility, regulatory hurdles, stablecoin competition, and ensuring network security.

The unfolding panorama suggests Bitcoin will carve out an important role in the global financial system, though a complete overhaul of established norms seems unlikely in the immediate future.

A group of veteran derivatives and FX traders in the US are launching USDi, a stablecoin designed to adjust its price in line with inflation. Its value will change regularly based on Consumer Price Index (CPI) data and the performance of Treasury Inflation-Protected Securities (TIPS).

Founder Michael Ashton aims to offer an asset that maintains purchasing power by minimizing exposure to inflation risk. However, with intense competition in the stablecoin market, USDi will need strong early traction to carve out its place.

A Stablecoin To Beat Inflation?

Stablecoins are in the spotlight right now, with friendly US regulation spurring a potential boom in trading volumes. Given the current pro-regulatory environment in the US and growing adoption, many new players are innovating.

Today, derivatives trader Michael Ashton announced USDi, a stablecoin built to fight inflation.

“The riskless asset doesn’t actually currently exist, and that’s inflation-linked cash. Holding cash is an option on future opportunities, and the cost of that option is inflation. If you create inflation-linked cash, that’s the end of the risk line,” Ashton claimed.

Investors have been using crypto to hedge against inflation for years, but USDi is a novel approach to the problem. Ashton joined two co-founders, an FX veteran, and a technical specialist, to create the firm USDi Partners LLC.

USDi is a stablecoin that is correlated with the dollar but isn’t pegged to it. Instead, it will loosely orbit the dollar, but its value will fluctuate alongside US inflation.

That prospect may seem convoluted, but a simple system defines the stablecoin’s value. Essentially, Ashton claimed that USDi would rise in accordance with regular CPI reports, calculating the total inflation since a predetermined start date.

This date is December 2024, so it’s still quite close to the dollar. Today, for example, USDi’s price is $1.00863.

The novel stablecoin is inspired by the Treasury Inflation-Protected Securities (TIPS), a government bond designed to protect against inflation. Since CPI reports only happen once per month, Ashton will adjust USDi’s price in accordance with more frequent data used by TIPS investors.

To maintain this system, Ashton will manage a fund that acts as the stablecoin’s reserves. USDi Partners will mint and burn tokens according to the daily level of inflation, plus a small transaction fee.

Only accredited investors can partake in the initial launch, but USDi Partners hasn’t announced an official release date.

In short, USDi seems like a unique approach to the crypto economy, but the stablecoin market is full of competition. Ideally, Ashton and his co-founders will be able to get some early traction to get this project off the ground.

If it proves successful, it can help demonstrate the versatility of crypto’s practical applications.

Bitcoin (BTC) is up 9% over the past week and is currently trying to establish support above the key $88,000 level. Momentum indicators like the DMI and Ichimoku Cloud are showing clear bullish signals, with buyers firmly in control.

If this trajectory continues, BTC could soon test higher resistances near $88,000 and potentially aim for $90,000 and beyond. However, analysts warn that renewed uncertainty around Trump’s trade tariffs could disrupt the rally and trigger a pullback toward the $81,000 support zone.

Bitcoin DMI Show Buyers In Full Control

Bitcoin’s DMI chart shows a notable rise in trend strength, with the ADX climbing to 29.54 from 24.07 yesterday.

This increase suggests growing momentum behind the current move, pushing the ADX close to the 30 threshold—widely seen as confirmation of a strong, sustained trend.

A rising ADX doesn’t indicate direction on its own, but when paired with directional indicators, it helps identify the prevailing force in the market.

Looking at those directional indicators, the +DI is currently at 23.47 and has remained steady between 21 and 23 over the past two days.

Meanwhile, the -DI has dropped sharply to 9.45 from 16.65, signaling a significant decline in bearish pressure.

This widening gap between bullish and bearish momentum points to buyers taking control, and if the ADX continues to rise above 30, it could validate a new bullish phase for BTC.

BTC Ichimoku Cloud Shows A Clear Bullish Structure

Bitcoin’s Ichimoku Cloud chart continues to lean bullish, with price holding firmly above both the Tenkan-sen (blue line) and Kijun-sen (red line).

This positioning suggests that both short-term and medium-term momentum remains in favor of buyers.

The flat nature of the Kijun-sen could act as a strong support area, while the rising Tenkan-sen shows buyers are still active on smaller timeframes.

Looking ahead, the Kumo (cloud) is green and steadily rising, which reinforces a positive outlook for the coming sessions. The price is well above the cloud, indicating the trend is bullish and also firmly established.

There’s also a clear gap between the current candle and the cloud, suggesting that the market has room to retrace without shifting the overall structure.

As long as the price stays above the Kijun-sen and the cloud remains green, the bullish trend remains technically intact.

Will Bitcoin Break Above $90,000 Soon?

If Bitcoin price maintains its current momentum, it could soon challenge the resistance at $88,839, with $90,000 as a psychological milestone.

Should the uptrend remain strong, further targets lie at $92,920 and potentially $98,484, marking a continuation of the bullish structure.

However, crypto analyst and Coin Bureau founder Nic Puckrin warns that this momentum could be short-lived. He notes that renewed uncertainty around Trump’s trade tariffs might weigh on BTC:

“The caveat here is that all this positive momentum could disappear in a puff of smoke if there’s any backpedalling on tariffs or an unexpected shock announcement – which we all know is always a possibility. In fact, we continue to have constant back-and-forth on tariffs: exemptions on electronics turned out to be temporary, the details of when tariffs will come in are lacking, and so on,” Puckrin told BeInCrypto.

He also defends that the $81,000 support could be tested again:

“This, perhaps, explains why Bitcoin is, once again, in a “wait and see” pattern, with low liquidations at under $200 million pointing to uncertainty in the market. If we don’t see any external shocks, $88,000-$90,000 is the next range to watch, with liquidity pool clusters at this level suggesting we will see an uptick of volatility here. However, a short-term correction to re-test support at $81,000 would be healthy and, as long as BTC remains above this threshold, would even point to a sustainable price recovery,”

Overall, it looks like the current macroeconomic factors are priced in. Yet, the market is cautious about sudden surprises, as Trump’s recent tariffs went beyond any conventional economic trend and disrupted almost every global financial market.