The Kuwait Financial Centre (Markaz), one of the leading asset management and investment banking institutions in the region has been making some waves online the past few days after publishing a research report in which they wrote about the potential for bitcoin in the GCC. In one section they also talk about how bitcoin could save the oil industry time, money and paperwork.
GCC region depends heavily on oil exports, (90% of exports and 75% of government revenue). As a result, they receive payments from all over the world. International payments might take close to 1-3 days or sometimes even more owing to different time zones. Revamping the payment system in line with bitcoin systems will yield in savings in terms of cost, time and paperwork involved. Alternatively the same payment method could be adopted for fund transfers among the GCC regions as well as the whole of Middle East.
The report is 25 pages long and I haven’t gone through it all yet but from what I saw the report covers a large variety of subjects and if you have any interest in bitcoin or want to understand it better than it should prove to be a good read. You can download the PDF from their website but registration is required. Here is the [Link]
Thanks Gary
10 replies on “Could Bitcoin be Used to Sell Oil?”
Interesting… However, why the world’s biggest bitcoin exchange collapsed? https://reut.rs/1gC4UZ9
The site owner/developer wasnt too professional and got hacked or stole the coins himself. Time will tell.
Bitcoin is decentralized and exchanges are a dime a dozen.
Im personally sick of selling our only resource for inflationary ponzi paper a.k.a US dollar. I hope something like bitcoin can grow enough to serve that purpose, though it would have to grow several orders of magnitude in price and market cap to be able to support oil trade. The report however is mostly talking about the significant saving of time and money which would happen if transactions were done using the bitcoin network.
“International payments might take close to 1-3 days”
OMG that’s soooo long! We cant wait that long to receive our billions!
LOL you clearly know nothing about business
This is an excellent idea if you want to be invaded by US, just as Iraq did back when it tried to sell oil in non-US currency.
LOL.
Such a stupid idea based on the info I know about bitcoins.
Things are worth whatever people agree on what it’s worth…it doesn’t have to be bitcoins. It could be marbles or seashells.