Venezuela Offers India 30% Discount On Crude Oil If It Uses Petro Cryptocurrency For Purchases!
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 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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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.
with God's favor that's soon, thank you for your article and for your kind answers, greetings.
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.