Hmmm!?: "Russia may turn to cryptocurrencies in oil trade to challenge sanctions & the petrodollar"
The whole point of using the US dollar for settlements is that it is a currency which everybody uses, because they ultimately have to use it at some point, and therefore has a base value. The only value you can give to a cryptocurrency in real terms is that relating to a fiat currency such as the dollar.
As most cryptocurrencies have no base (this is one of the effects of being decentralized), they can be highly volatile in dollar terms. Can you imagine selling $200 billion worth of oil only to find a week later that your cryptocurrency has lost 20% in its dollar value! And, if you are trying to replace the dollar, how can the cryptocurrency have any value? It has to be based on something. Unless, that is, you want everything to be priced in terms of oil, which is impractical, to say the least.
The gradual acceptance of digital currencies, with major exchanges about to launch bitcoin futures trading, may prompt some oil producing nations to ditch the US dollar in crude trade in favor of cryptocurrencies, an oil analyst says.
Source:
https://www.rt.com/business/412619-russia-cryptocurrencies-oil-trade/
(Picture: pixabay.com)
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