• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 1 hour US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 2 hours While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 31 mins Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 6 hours Marine based energy generation
  • 2 hours China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 4 hours Today 127 new cases in US, 99 in China, 778 in Italy
  • 10 hours Real Death Toll In CCP Virus May Be 12X Official Toll
  • 20 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 1 day Trafigura CEO Weir says, "We will see 30% to 35% drop in demand". That amounts to 35mm bbls/day glut ! OPEC+ 10 mm cut won't fix it. It's a DEMAND problem.
  • 35 mins Apple to Bypass Internet and Beam Directly to Phones
  • 6 hours Which producers will shut in first?
  • 16 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
Alt Text

Is Gazprom’s LNG Megaproject Doomed To Fail?

Russia gas giant Gazprom has…

Alt Text

Iraq On The Brink Of Civil War As Oil Revenues Evaporate

Crashing oil revenues because of…

Alt Text

Oil Industry Joins The Fight Against Coronavirus

The coronavirus has forced businesses…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Another Oil-Backed Cryptocurrency Launches

New York-based investment and holding company Signal Capital Management said on Monday that it had launched a cryptocurrency backed by oil and gas reserves in what it says is the “world’s first globally compliant” oil-backed digital currency.

The new digital currency, PetroDollars, will be backed by the underlying value of recoverable reserves of crude oil and equivalents such as natural gas and condensates, and related assets.

This is not the first oil-backed digital currency in the works, not counting Venezuela’s El Petro cryptocurrency attempt to skirt U.S. financial sanctions.

In December 2017, a team of banking and technology managers and former U.S. regulatory commissioners said that they were launching the world’s first regulatory compliant cryptocurrency backed by a physical asset—OilCoin, which would be based on oil reserves.

Now PetroDollars—“a globally compliant digital reserve currency” as its proponents bill it—is undergoing a regulatory-compliant private placement of PetroDollars tokens to accredited U.S. and foreign investors, Signal Capital Management says.

A global initial coin offering (ICO) is expected to take place in late 2018 and to be up to US$700 million in size, one of the largest ICOs to date, Signal Capital Management said.

After the ICO, “each of the projected PetroDollars tokens in circulation in the year following the ICO will be backed by more than 10 barrels of oil equivalent of proved, probable, and possible recoverable oil and gas reserves, certified by a third party independent petroleum engineering firm,” said the firm launching the new cryptocurrency.

According to its creators, PetroDollars is expected to be in the top 20 cryptocurrencies by total market value. It will be exchangeable for major world currencies and other cryptocurrencies. PetroDollars tokens will be nominally hard-capped at 500 million tokens, according to the White Paper of the new oil-backed digital currency.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment
  • John Brown on March 12 2018 said:
    LOL! These Crypto currencies are so bogus. National currencies these days are backed by the economies of the nation's that issues them. In the case of a Socialist Paradise like Venezuela with an economy mismanaged and nearly destroyed by a corrupt socialist Government their currency become nearly worthless because their GNP is dropping like a rock as they print more and more Bolivars. So Maduro comes up with El Petro. Well why would anybody have anymore confidence in Venezuela's crypto currency backed by the countries oil and gold, than they do with the Bolivar which is backed by the countries oil and gold? What is do keep Maduro from inflating El Petro, and how do you get your oil or gold when you want or need it. The reality is that El Petro isn't any better than the Bolivar, except its a crypto currency which seems to be the current Fad.
    So now we have Signal Capital Management creating it own crypto currency backed by its oil reserves. Well that's all well and good but keep in mind its only value is the word, trust, and value of Signal Capital Management. So what happens to that crypto currency if Signal suddenly runs into a Deep Water Horizon type situation? Its dealing in oil, so an massive oil spill, tanker explosion etc could always happens. What happens if an Enron situation develops? Keep in mind that Enron was considered as good as gold, until suddenly it wasn't. What if the SEC & FBI walk into their corporate HDQ one day and arrest and perp walk out all the top management, and freeze most of their assets. What happens if there's a recession and they file for Bankruptcy protection? Personally I'd rather hold dollars, Euro's, Yen, or Yuan. If a company takes a big hit I can always buy from someone else. If Signal takes a hit or goes down who will accept their crypto currency? You can probably line up in bankruptcy court but why would you take on that risk? I honestly don't know. Maybe someone could right an article explaining why anybody would gamble on a crypto currency, instead of say, the dollar if they are in the oil business.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News