According to analyst Stephen Barnock, the recent strengthening in virtual currency could help major oil producers undermine the dollar's status as the world's leading currency reserve
The madness around Bitcoin may prove to be a catalyst for big oil producers to take action against the dollar's dominance, according to analyst Steven Barnock, an oil specialist at PVM Oil Associates.
The value of the world's most popular virtual currency has surged in recent months, and yesterday it jumped to more than $ 17,000, although it has since weakened. Such sharp price fluctuations caused the big banks to warn against the Bitcoin, fearing it was a bubble about to explode.
However, at the beginning of the month, regulators in the US approved two of the major stock exchanges to trade in currency contracts, a move seen by many as a vote of confidence in the legitimacy of the virtual currency.
"These moves are likely to increase the popularity of virtual currencies, to the extent that they pose a threat to the dollar's position as the world's leading currency reserve," he wrote.
Dollar contracts on oil dominate global markets at this stage, although countries such as China, Venezuela and Russia are seeking a strategic move away from the US currency. "This strengthening of the virtual currencies represents, therefore, a new catalyst for commodity exporting countries that seek to abandon the dollar as the form of payment for oil," he said, Barnock stressed.

Earlier this week Venezuelan President Nicolas Maduro announced the launch of a new virtual currency called Petro. The goal is to keep away from dollar payments while the tension with the US is at its peak, and Russia supports such moves, but in China, the central bank in September stopped the activity of trading platters ...
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