Cryptocurrencies Could Be Used to Purchase Oil in the Future, Says Head of Russian Energy Giant

Igor Sechin, the head of Russian oil giant Rosneft, has recently revealed the possibility of the firm purchasing oil using cryptocurrencies in the future hasn’t been ruled out, although there are a few issues surrounding the cryptocurrency space that need to be fixed first.

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.

Per the news outlet, while speaking at the St. Petersburg International Economic Forum, Sechin suggested Facebook’s reprotedly soon-to-be-launched stablecoin GlobalCoin could be used to purchase oil by the barrel in the future, although he noted there are a few setbacks in the cryptocurrency space that 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 is notably not the first time cryptocurrencies are linked to oil in Russia. Earlier this year, as CryptoGlobe covered, former Russian Energy Minister Igor Yusufov proposed the development of an oil-backed cryptocurrency to the State Duma, at a time in which the lower house of the country’s Federal Assembly was looking into cryptocurrency regulations.

Elsewhere, the Venezuelan government has launched an oil-backed cryptocurrency called the Petro, in a move made to help the country bypass international sanctions and gain access to foreign currency. The cryptocurrency proved to be a controversial one, and even saw U.S. President Donald Trump stop Americans from investing in it.

The Abu Dubai National Oil company has also conducted a pilot to test the use of blockchain technology for oil tracking, in collaboration with IBM.

Time to Be ‘Cautious or Short' Bitcoin, Says Bollinger Bands Creator

Francisco Memoria

John Bollinger, creator of the popular technical analysis tool Bollinger Bands, has tweeted out it’s time to be “cautious or short” on the price of bitcoin, after the cryptocurrency’s price dipped below $10,000 for the third time since the so-called black Thursday.

On social media, Bollinger pointed out that bitcoin’s last move p over the $10,000 mark, which came shortly after U.S. President Donald Trump finished a speech on law and order in which he vowed to take “immediate presidential action to stop the violence” and said he was “mobilizing all available federal resources — civilian and military — to stop the rioting and looting,” was a head-fake.

A head-fake, Investopedia writes, occurs when the price of a security moves in one direction initially, but then reverses its course and moves in the opposite direction. These trades occur most frequently at key breakout points – for bitcoin, a key point was the $10,000 mark.

The price of the cryptocurrency dropped suddenly after breaking its key breakout level earlier this month over a flash crash on BitMEX that saw its price dip to $8,600 before it started recovering. CryptoCompare data shows that bitcoin is now trading above $9,600, but that since the March 12 coronavirus-induced market crash it has tested the $10,000 mark three times already.

Bollinger, it’s worth noting, has a decent track record looking at cryptocurrencies. In October 2019 the analyst accurately said the price of BTC dropping to $7,300 was a head-fake, and the price of the cryptocurrency then moved up in a significant rally to $9,500.

In April of this year, Bollinger tweeted out BTC was “moving into squeeze territory,” shortly before the cryptocurrency’s price started surging. He was, however, caught off guard by the Black Thursday sell-off, as were most investors and analysts.

It’s worth noting many in the cryptocurrency space are still bullish long-term. As reported early BTC developer Adam Back – who some believe could be Bitcoin creator Satoshi Nakamoto – has said he believes the price of the cryptocurrency will hit $300,000.

Featured image via Unsplash.