Igor Sechin, the head of Russian oil giant Rosneft, has recently said that there is a possibility of the company buying oil by paying via crypto assets in the future and that this option has not been ruled out, although there have been a few issues surrounding the crypto asset space which need to be fixed very importantly.
According to a report published by local news outlet Snob, “Sechin revealed the oil industry’s acceptance and awareness of the cryptocurrency space is on the rise, as tech giants from Silicon Valley like Google and Amazon are starting to explore the energy sector.” As per the news outlet, while speaking at the St. Petersburg International Economic Forum, Sechin suggested that Facebook’s soon to be launched stablecoin which has been named GlobalCoin might be used used to buy oil by the barrel in the near future, although he noted that there are a few setbacks in the crypto asset sector which could be forcing energy giants like Rosneft away.
Sechin was quoted as saying (translated): “Greater flexibility often means greater volatility, and digitalization creates risks for maintaining commercial secrets and leads to the need to create new regulatory mechanisms, additional reservations. Today, technology companies do not have quality answers to these fundamental questions.” This has not been notably the first time crypto assets have been linked to oil in the nation of Russia. Earlier this year, former Russian Energy Minister Igor Yusufov proposed the development of oil which would be backed up by a crypto asset in the State of Duma, at a time in which the lower house of the country’s Federal Assembly was looking into regulations of crypto assets.
Elsewhere, the Venezuelan government has launched an oil-backed crypto asset named as the Petro, with an aim made to help the nation bypass international sanctions and gain access to foreign currencies. The crypto asset proved to be a controversial one and even saw U.S. President Donald Trump stop the people of his nation from investing in it. The Abu Dubai National Oil company has also conducted a pilot test to make use of the blockchain technology for tracking of oil in collaboration with IBM.