Iris Coleman
May 28, 2026 22:20
Fidelity highlights Bitcoin and gold as alternatives to USD in global trade and reserves, citing rising adoption by nations like Iran and central banks.
Bitcoin (BTC) and gold are increasingly positioned as alternatives to the US dollar in global trade and reserves, according to a report by Fidelity Digital Investments. The report, titled “Six Key Trends Shaping Digital Assets in 2026,” points to growing adoption of Bitcoin and gold by nation-states and central banks, signaling a potential shift away from USD-based systems.
One key example is Iran. The Iranian government recently began accepting Bitcoin for oil shipping toll payments in the Strait of Hormuz, alongside dollar-pegged stablecoins and Chinese yuan. This move illustrates the emergence of “alternative settlement mechanisms,” as Bitcoin’s decentralized, confiscation-resistant properties offer an appealing option amid geopolitical tensions. Tehran is also evaluating a blockchain-based maritime insurance model for oil vessels, which would settle payments in Bitcoin.
Meanwhile, central bank demand for gold remains robust. The World Gold Council reported that 244 tonnes of gold were purchased in Q1 2026, a 17% increase from the previous quarter. Poland and Uzbekistan led these purchases, continuing a trend of diversification away from dollar reserves. Gold now exceeds USD assets in some central bank balance sheets, further reinforcing its position as a cornerstone of global reserves.
Bitcoin Adoption Faces Challenges
Despite its growing use in trade, Bitcoin adoption by central banks remains limited. As of May 2026, Bitcoin trades at $73,630, with a market capitalization of $1.45 trillion. However, institutional adoption has been mixed. While the U.S. federal government reportedly holds over 328,000 BTC, central banks remain wary of Bitcoin’s volatility and transparency issues. Investor Ray Dalio recently stated that Bitcoin’s transaction traceability makes it less appealing to central banks seeking control over monetary systems.
That said, Bitcoin’s supporters argue that its decentralized nature makes it uniquely suited to replace the US dollar as a global reserve currency. Fidelity’s report notes that while gold continues to outperform in central bank reserves, Bitcoin’s role is still emerging, particularly in regions looking to bypass traditional USD-dominated systems.
Broader Implications for USD Dominance
This dual shift—toward gold in central bank reserves and Bitcoin in trade—highlights ongoing diversification away from the US dollar. Geopolitical risk, sanctions, and reserve management strategies are driving this trend. Central bank gold purchases hit a record 1,200 tonnes in 2025, with annual demand projected between 750–850 tonnes for 2026. This underscores gold’s enduring appeal as a hedge against dollar volatility, while Bitcoin’s role as a decentralized alternative continues to evolve.
For traders, these developments offer actionable insights. Bitcoin’s growing use in global trade may support its long-term value proposition despite short-term price volatility. Meanwhile, gold’s sustained demand from central banks reinforces its safe-haven status, even with a 20% decline from its January peak of $5,600 per ounce.
Looking ahead, the pace of Bitcoin adoption in sovereign trade and the persistence of central bank gold accumulation will be key indicators of how the global financial system continues to shift away from USD dominance. Traders should monitor geopolitical developments and reserve management trends closely for investment opportunities.
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