Author: Jagdish Kumar, India
Even though India imports over 75% of its crude oil from other countries, it has turn down an offer made by Venezuelan government of getting 30% discount, if payment is made through cryptocurrencies.
This comes after Venezuela has offered a 30% flat discount on crude oil exports to India, as the country is reeling under pressure, as US scantions have crippled its economy and to stay working the Latin American government in using new technique to generate revenue.
Responding to the offer, Indian foreign affairs Sushma Swaraj said that as Reserve Bank of India (RBI) has banned cryptotrading, we cannot accept such an offer.
While speaking at a conference on Venezuela and Iran, the minister said that other than crypto, we will see which medium we can use for trade.
Ms Swaraj underlined that we don’t make our foreign policy under pressure from other countries and India follows only United Nations sanctions, and not unilateral sanctions by any country.
Venezuela and Iran are facing sanctions from the US and are looking to deal in their own currency for oil or looking to invent their crypto currency to bypass the US sanctions.
While the South American is looking to increase adoption of the petro in return of oil, Iran is quietly working its own version of a state-backed crypto.
In April this year, the president of Venezuela Nicolas Maduro proposed a two pronged strategy that include India make payment in petro or petromoneda, a cryptocurrency developed by the government of Venezuela launched in February 2018 designed especially for dealing in paying in return of oil, while Iran agreed to forgo using US dollars in future oil trade with India.
India has been wary on using cryptocurrencies and the central bank has banned all institutions under regulatory purview from dealing in cryptocurrencies, insisting they must prohibit its use and purchase.
RBI has made hard for adoption, employing legal measures and law enforcement to combat domestic interest and directed banks too may not even settle in decentralized money.
Image Credit: cryptocoingrowth.com