• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 30 mins Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 2 days We're freezing! Isn't it great? The carbon tax must be working!
  • 2 days US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 10 hours Let’s take a Historical walk around the Rig
  • 4 hours Beijing Must Face Reality That Taiwan is Independent
  • 19 hours Trump has changed into a World Leader
  • 20 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 20 hours Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)
  • 3 days Indonesia Stands Up to China. Will Japan Help?
  • 2 days Might be Time for NG Producers to Find New Career
  • 3 days Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 3 days Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
Why Did Haftar Turn Libya’s Oil Off?

Why Did Haftar Turn Libya’s Oil Off?

General Haftar is in the…

PDVSA Considers Using Bitcoin To Pay Suppliers

PDVSA Maduro

Venezuela’s oil company, PDVSA, is considering switching from hard cash to bitcoin and ether as payment means for its suppliers, Bloomberg reports, citing people in the know who declined to provide their names.

According to the report, Venezuela’s central bank is studying whether it can stock up on the cryptocurrencies and include them in its foreign exchange reserves. To date, according to Bloomberg, these have slumped to just $7.9 billion.

Venezuela launched its own cryptocurrency, the petro, last year, to much local fanfare. The currency was to be backed by the country’s oil and gold reserves. While many saw it as an attempt to revive a failing economy destined to fail, Venezuela’s President, Nicolas Maduro, touted it as part of an economic recovery program.

Yet the petro never took off, not least because the U.S. banned American traders from dealing in the crypto months before its official launch in November last year. Traders themselves were not particularly enthusiastic about the new crypto and it never took off the way Caracas may have expected it to.

However, as Decrypt points out, bitcoin and ether are internationally recognized and widely used cryptocurrencies, unlike the petro. Both are accepted globally and using them to pay for services is not an eccentric way of doing business anymore.

Decrypt also notes Venezuela has cheap electricity, which means the government may have already organized crypto mining farms to accumulate reserves of bitcoin and ethereum, despite the string of blackouts earlier this year, which crippled the grid and the economy.

Unfortunately for Venezuela, using cryptos instead of fiat currencies will not be problem-free. Cryptocurrencies are traded on online exchanges and many of these are subject to U.S. laws or the laws of countries that comply with U.S. laws, especially when it comes to sanction violation. In other words, switching from cash to cryptocurrencies may end up being futile for PDVSA.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play