Venezuela has made an offer to India to buy crude oil from them using their new blockchain technology based cryptocurrency 'Petro.' If India accepts this it will get a 30% discounts on crude oil imports. This is a significant discount but the rider here is that the trades will take place using 'Petro' cryptocurrency.
It's an amazing development because Petro is the world's first state-backed cryptocurrency which is directly tied to Venezuela's oil reserves. The fact is that Venezuela's oil reserves are the highest in the world. It has 300 billion barrels of crude oil reserves. Saudi Arabia given it's reputation as the world's largest producer of crude oil only has 266 billion barrels in reserve.
India imports more than 80% of it's crude oil to meet domestic needs. Local production in insufficient and it needs to constantly import oil from other countries. 30% discount will certainly help the economy but the caveat is the Petro cryptocurrency. Indian government currently calls cryptocurrencies as crypto-assets and doesn't consider them to be a currency in anyway.
According to Business-Standard, "A team of experts from Venezuela’s blockchain department was in India last month, according to multiple sources. They entered into a pact with Coinsecure, a Delhi-based bitcoin trading firm, to sell Petro in India."
Coinsecure Chief Executive Officer Mohit Kalra said Venezuela wanted to add Petro as a cryptocurrency on Coinsecure, so they can trade Petro against bitcoin and the rupee.
Petro seems to have raised over $3 billion dollars with interests from over 127 countries during it's pre-sale in February. It's interesting how the cash-strapped economy is relying on digital currency to pave the way towards its economic growth and sustainability. It will be launched after the presidential elections scheduled to take place on May 20th, 2018.
Venezuela also plans on making their Petro cryptocurrency it's official currency by 2020. This sounds incredible and yet it's the fact apparently. US government led by Donal Trump has already declared a ban on Petro. But that hasn't deterred Venezuela's efforts to take Petro to the world.
As per Reuters, India’s oil imports from Venezuela averaged around 300,000 barrels per day (bpd) between November, 2017 and February, 2018, a drop of about 20 percent from the same period a year earlier and the lowest such level since 2012, according to data from shipping sources and industry.
Coinsecure, led by Kalra will provide the White Label cryptocurrency exchange software solutions. This will enable all cryptocurrency players in Venezuela to trade on that exchange.
“That would be run by their brand name, but the back-end will be us. We plan to provide them with 10-15 cryptocurrency players,” Kalra said.
Coinsecure since then has been caught up in a major Bitcoin theft which is likely to be an inside job. At the point it's unclear if Coinsecure will remain a partner to launch Petro in India on their exchange. Nonetheless, this is a fantastic development.
India's central bank RBI recently issued a circular banning banks from rendering their services to any cryptocurrency business or exchange in India. There is a law suit filed against RBI in the Delhi high court and the next hearing is scheduled for May 24th.
There's not a lot of data regarding Petro's token supply or how it will be issued currently. For the sake of Venezuela's economic growth I hope their Petro works out to be successful, even though it sounds a bit complicated and centralised.
But Venezuela has a big challenge getting the Indian government to accept the Petro cryptocurrency. It also owes several billion dollars in debt to countries such as China. If it can get beyond supplying to the countries it already owes maybe there will be sufficient logistical capability to ship to India as well. Neverthless, these are some exciting times indeed and we'll know how these things pan out in the months to come.
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Venezuela has the largest oil and gas reserves in the world, with execptional quality, only need a good investment to move forward, some measures today have not been the best, but we still have faith that things will improve for us, maybe this business with India could be a way out.
Thank you for your comment @melvadg. It's great to know about this from a citizen of Venezuela. It's one of the countries I wish to visit in South American continent. I hope the economic situations improves quickly for people of your country.
Apart from hydrocarbons we have beautiful places, I recommend you to visit Merida, Isla de Margarita and of course the majesty of the Gran Sabana!
I will. Thank you for the recommendation.
There cannot be hope for people to get out of that nightmarish reality if you deal with criminals and corrupts that destroyed people's lives. If you do, you're just contributing to the disgrace. There's never going to be a way out unless those corrupts are removed.
I sure hope India adapts the "Petro" XPD.
I wouldn't touch Petro with a 10 foot pole normally, but if my people and I were going to save 30% on an essential such as oil, I would definitely do it.
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Ha ha, I am indeed, and I am buying up more and more each week I power-down.
So you quitting steemit soon ?
No, not quitting, just less of a presence.
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It's gonna replace Ethereum, and comes out on June 1 2018.
Yes true. But the quality of oil which Venezuela produces is not great it seems. see here : https://www.reuters.com/article/us-venezuela-oil-insight/venezuelas-deteriorating-oil-quality-riles-major-refiners-idUSKBN1CN2EO Also
That's quite a revelation indeed. Sucks if they can't provide good quality of crude oil. I was also pleasantly surprised to learn that Reliance Industries owns the largest oil refinery in the world in India. :)
My initial thought was Venezuelan oil naturally is a low grade one. But it seems that lot to do with their mismanagement. Also, I don't know who will bet money in Petro.
We have oil with the best quality, perhaps in all this influences the bad administrative policy that has led the industry to have a very bad management in all senses, however there are hydrocarbons of various types that with a little investment, could be beneficial for everyone.
I never expected a Venezuelan comment. Maybe my understanding about the quality of oil is not completely true. I think I got this notion from a youtube channel VIzualpolitik. They gave a very bad impression of Petro too. As I said, I am not an expert either.
I can attest to the quality of my country's crude oil, only that the policies do not help us, just as we have some doubts about Petro, but in Venezuela we continue to fight for a better country.
Thank you for your inputs on this! :) I hope the government policies change making it easier to make and export high quality crude oil from Venezuela to other countries benefitting everyone.
Reliance Industries is biggest corruption industry
This is major catch-22 for Indian economy. On one hand lies discount on the other lies kowtowing to demands of people holding the larger stick and thus holding up promises made under pseudo duress.
The govt. of India faced major heat when they used Bullion to Purchase oil. I doubt they would want to face that again.
Serves them right. Not in a fix aren't they haha. Either ways, great news and they might most likely end up taking the offer is what I feel. We are known for acting impulsively on discount deals :P
Our country only runs on discounts and jugaad lol.
" Venezuela also plans on making their Petro cryptocurrency it's official currency by 2020. "
Damn sun! the revolution is here at last! Can't wait for the day where its all about crypto, But the only scary part about crypto is its price volatility. hope they come up with some solution for that too!
Great! Bring down the USD and the fiat octopus!
It's well past time that the stranglehold of the American oil powers on the world economy were crushed into dust.
The people in Venezuela live with a $ 3 monthly salary, of course they will offer everything just to get out of the big crisis.
You're right dear friend, they don't know what to play for anymore international investment.
Is it because of the bad policies of Venezuelan Govt?
everything looks rosy but.... we have a harsh reality, full of hunger, inflation, etc.
@melvadg : Are you on discord?
our government does not want to get out of the crisis, wants to continue stealing, the petro is a scam.
Hope that keep us afloat...if something like this happens...then it is a step forward towards crypto India. The amountbof discount is enough to make many to tjink upon.....even the govt. For sure Reliance industry will look forward to tje news....due to their interest in jio curency and also in petro industry..
So now Indian government facing pressure from outside along with us. Nice 👍 wee need only result how it will regulate doesn’t matter.
Wow, this is going to shake up the world even more when counties start using Cryptos instead of the usd... we’ve already sadly seen what happens when countries don’t want to use the usd to sell or buy oil anymore...
Yeah the USD dominance on global trade could do well with some serious competition.
I never knew Venezuela has that much oil. Why is this not in the world news?Anyway, Venezuela has great treasure. I hope too this will pan out, and India takes the offer and gives Petro a chance.
Thanks for sharing @firepower.
not only the greatest riches in oil, we can add gas, gold and many minerals that could be exploited in a good way.
That's really great to hear, @melvadg. That's some natural wealth your country has.
Me detuve a leer cuando vi el nombre de Venezuela, el Petro ununa criptomoneda que nace el plena crisis de mi país, quedamos a la espera de los futuros beneficios y los contras de esta nueva propuesta. Gracias por mostrar al mundo esta información. Saludos luz fermin
30% discount is only worth anything if the currency is pretty stable. Cryptos are incredibly volatile so a 30% discount could still see them considerably out of pocket! Unless the Petro can be pegged or constrained in some way!!
This is a welcomed development and a genarous off from venezula goverment..
In as much as bilateralism is attained and comparative advantages promotes efficiency.
Cryptocurrency is at if bloom
.Thanks sir
Wow that's great news ....I think it's beneficial for india ...
If everyone accepts crypto in coming near future we could expect everyone buy & sell daily needful products in india unless government doesn't BAN cryptos. And that's when we all get real & immediate use of steemit earnings :P Hope someday I shall write a blog about how to make chai and use the SBD to buy milk for next one week :D
pretty interesting developments going on . Specially with coinsecure , Venezuella debt and compelling 30% discount. Lets see .
Serves them right. now not in a repair are not they haha. both approaches, outstanding news and they might maximum probable end up taking the provide is what I feel. we're known for performing abruptly on discount deals :)
People in Venezuela know it's a scam, so the government is going to other countries now? Haha.
Unfortunately the discount might sway people, since money matters more than not getting on board the slave system. Government-backed centralized cryptos are the opposite of what we need.
I doubt that the India government will accept this petro coin as an exchange form coupled with the records of coinsecure. I see India creating their own coin. The coin is been controlled by the Venezuela government which I feel won't do well in the market
Since India has announced a ban on cryptocurrencies (not directly) it doesn't seem that India will accept this proposal. As the US has also banned Petro and India can't afford the US's hostility resulting out of this move, Venezuela's plan seems not to be fulfilled.
Venezuela is in desperate need of money as its economy has dipped so low that it has become a big task for its citizens to even feed themselves two time daily. So, overall it seems to me a desperate move which is not likely to be successful. But this world is very strange. let's see what happens!
Jfyi. There is no ban on cryptocurrencies in India yet.
No no bro! I meant it was an indirect ban because government didn't allowing banks to have any business relations with cryptocurrency traders. I hope this situation will not stay longer.
Thanks!
Yes. I hope so too. Another 2 months and we'll know for sure.
The South American country may become a key factor to establishment officially cryptos in India. If this happens, everything will be alright. Thanks for sharing such a fantastic news. Good luck.
I hope ambani and adani will surelly make govt to reover think about acceptance of India towards crypto.. If they found petro useful.. Seems postive sign indicating..finger crossed..
If India supports cryptocurrencies from now on, I am thinking... Wouldn't I be one the smart guys who didn't stoped believing in cryptos... Wish to see the future in India when I would use cryptocurrencies to buy things on daily basis :)
our government does not want to get out of the crisis, wants to continue stealing, the petro is a scam.
The evolution is very large and very stunning
I expect a lot of encryption to succeed after this
Really great article indeed
Thanks for share this.
Coinsecure and Petro combination will be awseome....Waiting for the miracle
Great article, thanks for sharing. I've smashed the upvote button for you!
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Yesterday I posted the same https://steemit.com/india/@arun5866/venezuela-offers-india-30-discount-on-crude-but-with-cryptocurrency-rider
Thanks a lot for sharing discuss about crypto
Keep it up...
hanks for sharing this post.
Nice negotiation from the cryptocurrency body.
Nice share @firepower
waoo!! surely cryptocurrency will soon gain more power if successful.
this is horrendous news. we see the future. does this happen.
@firepower, I like post and I'am follow you in steemit
Interesting, lets see how this plays out!
Wow they are ahead of the curve!
Even before there are entities who don't want crypto exist in India and this is a great offer for India and I pray they approve the offer so those entities would just keep mute 🔇
Venezuela has indeed made a statement by introducing a cryptocurrency Petro as their national currency. Though the elections will decide the fate of the Petro, the bold step of inviting other countries to use their cryptocurrency as form of payment is going to be written in history! Blockbasis has observed that in the world of cryptocurrency someone needs to take a step to make cryptocurrency more acceptable and common to the masses. The Venezuelan government's offer is that step towards more countries accepting and normalising cryptocurrency the the daily lives of their citizens.
Hooooly shit. I really think this changes things for all of us. India wanting to ban transactions of crypto to fiat currencies and Venezuela having a state backed crypto currency for a resource that we require from foreign countries.
Exciting stuff to read and hear about I can't wait to see the end of it lmao. Looking at all of those dumbfounded faces when people realize that they can't stop cryptocurrency and its widespread and for all the people not believing in people that talk about how it matters and how it's going to make a difference. Call me a child but I know people would looooove to see the look on other people's faces when this blows out of proportion more so than it already has.
India, we are in you.
Cryptocurrency cannot be stopped. But regarding Venezuela, this is not crypto. It's a charade, a circus to maintain everyone busy from the crimes committed to their own people.
That thing called Petro is not a cryptocurrency for the simple fact that is not decentralized. I recommend to stay away from it.