[2014-07-01] Gulf Times - Kuwait finance firm suggests trading oil in bitcoins

[hacknoid]

http://www.gulf-times.com/eco.-bus.%20news/256/details/398622/kuwait-finance-firm-suggests-trading-oil-in-bitcoins

The most active countries today that pursue a no-dollars-for-oil policy are Iran, which encourages all trading partners to pay for oil in a currency other than the US dollar, and Russia, whose flagship company Gazprom, the largest extractor of natural gas in the world, recently told oil importers from China and Japan that they should pay their bills not with greenbacks, but preferably with yen, yuan or even ruble.

But a new report (Disruptive Technology: Bitcoins, Currency Reinvented?) recently issued by Kuwait-based investment banking and asset management firm Kuwait Financial Centre, also known as Markaz, even goes a step further: Oil producing countries, particularly in the GCC, could benefit if they would use bitcoin in oil trading, Markaz’ research department argues.

When I first read the article I thought it makes sense (see Falkvinge's opinion a while back).  However, I quickly dismissed the article seeing as Russia had taken such a hard line against Bitcoin.  But with news today of Russia's softening stance, I thought this was actually quite interesting.  Coincidence?  Hmmm....

[rtt]

Unbelievable!!!
But very welcome. 'bout time...

[kjlimo]

Why do they care which currency is being used to purchase the oil?

Do they have trouble converting US dollars into their preferred currency or paying expenses?

[jaime]

Why do they care which currency is being used to purchase the oil?

Do they have trouble converting US dollars into their preferred currency or paying expenses?

Pricing oil in dollars is what makes the dollar a global reserve currency.
Think about this:  you can pay everyone with a currency that only you can print at will...

Some people believe that the real reason for the war in Iraq was because they threatened to stop using the dollar and so they were made an example for the other oil producing countries.

http://inflationdata.com/articles/2014/05/30/oil-petrodollars-gold/

[LiteCoinGuy]

hope not that this will happen any time soon because we would get too much heat.

[Ron~Popeil]

hope not that this will happen any time soon because we would get too much heat.

Those of us that are holding bit coin would also get a lot wealthier over night. Even as an American I would like to see us step back a bit politically and militarily from the world. This might force our politicians to do that.

[howardb]

Not gonna happen as long as Saudi need's USD petro dollars to buy arms from US.

[Ron~Popeil]

Another on the same on venturbeat, claims OPEC have been discussing it for the past year:
http://venturebeat.com/2014/07/02/report-touts-bitcoins-over-bucks-for-opec-uh-oh/

This is an exciting possibility for sure but I would like to see less disinformation in the article. Bit coin is not prone to hack attacks for instance.

[SirWilliam]

This would be a key role for Bitcoin, incredible that it's even being talked about.