Geopolitical tensions and changes in trade dynamics are leading Asian countries to gold, yuan, and cryptocurrencies.
Bitcoin is increasingly benefiting from Asia's move away from the dollar due to geopolitical tensions, trade weaponization, and financial instability.
Bitcoin, Gold Rise… Asia's De-dollarization Accelerates
Along with gold and the Chinese yuan, Bitcoin (BTC) is emerging as a key asset for moving away from the dollar across Asia. According to experts, this trend reflects a shift towards a multipolar financial order.
Asian economies, including Singapore, Indonesia, Japan, and India, are reducing their dependence on dollar assets.
According to local media, countries are establishing bilateral trade agreements and prioritizing local currencies. They are also increasing allocations to alternative stores of value like gold and Bitcoin.
"The US dollar, or Treasury bonds, were generally considered global reserve assets. But in recent months, as bond yields have risen and gold and Bitcoin have shown better performance, the situation has changed." – Saad Ahmed, Head of Gemini Asia Pacific for a global cryptocurrency platform, reported by SCMP.
A Gemini executive mentioned that Bitcoin is increasingly seen as a complementary hedge to gold, especially among young and institutional investors skeptical of the dollar's long-term dominance.
"It's not about rejecting the dollar, but recognizing that it's wise to diversify risk," he added.
After the US sanctions on Russia and Iran, and the weaponization of the dollar in global diplomacy, many Asian central banks and investors are exploring digital alternatives. One such country is Pakistan, which is considering establishing a Bitcoin strategic reserve.
NEWS: Pakistan announces plans to establish a Bitcoin strategic reserve.
— CoinGecko (@coingecko) May 29, 2025
As of April 2025, governments collectively hold 463,741 $BTC, representing around 2.3% of Bitcoin's total supply.
Our latest study reveals the U.S. leads in holdings, followed by China and the U.K.
Read… pic.twitter.com/OYKwucqY7k
In other Asian countries, digital alternatives extend beyond Bitcoin to include stablecoins and Central Bank Digital Currencies (CBDCs). While CBDCs focus more on actual cross-border use, Bitcoin's role as a store of value continues to expand, particularly in regions like Hong Kong and Singapore.
Gold, a long-standing safe asset, rose 26% in 2025, reaching an all-time high of $3,450 per ounce in April. This surge occurred amid concerns over US-China trade tensions. Bitcoin also rose, reaching an all-time high of over $111,000 on May 21, driven by a positive sentiment around increasing institutional participation.
Trump's recent Truth Social statement reflects the unpredictability of US trade policy. After claiming he eased tariffs to prevent China's economic collapse, he then blamed Beijing for violating the agreement.
"We essentially went COLD TURKEY with China… I made a quick deal to save China from a very bad situation… China completely violated our agreement," he wrote on Truth Social.
This uncertainty is leading countries like Indonesia to conduct 15% of their trade with China. Japan is also exploring alternative currencies like the yuan and rupiah.
India has established similar transactions using the rupee with 18 countries. Local currency settlements and regional frameworks like ASEAN are gaining momentum as practical buffers against dollar risks.
"Asia's de-dollarization represents a gradual move towards a multipolar currency system, not just a simple currency replacement," said Ben Charoenwong, associate professor at INSEAD.
Meanwhile, Bitcoin's role remains in a niche market in trade, but its position as a hedge against dollar volatility continues to grow.
As both gold and Bitcoin show better performance in 2025 and young investors drive adoption, Asia's de-dollarization could usher in an era of a new, diversified reserve strategy. In this change, Bitcoin may no longer remain on the sidelines.
