A report from Snob.ru released on June 6 indicates that Rosneft, the dominant Russian oil company, still believes it is possible to use cryptos to pay for oil purchases.
The CEO of Russian oil giant Rosneft Igor Sechin acknowledged that the oil industry had accepted, and was increasing the level of receptibility on information concerning cryptocurrencies.
The greater tilt towards crypto comes at a time Silicon Valley’s Amazon, Apple and Google have started immersing themselves into the oil and gas sector.
As much as there is that possibility, Sechin said that there is a need for cryptocurrencies to address some hiccups if they would want to win the interest of the energy heads. In his suggestion, the stablecoin Facebook which is at the moment is developing had the potential to be used to buy oil in the future.
During the International Economic Forum at the St. Petersburg, Sechin said that greater volatility goes hand in hand with increased volatility. Furthermore, he said that it is very risky to keep commercially sensitive information when dealing with digital assets. To curb the security issue, new regulations have to be formulated.
He noted that currently, most technology companies have no convincing response to address the most sensitive questions.
It will not be the first time when oil and cryptos are being linked. Venezuela’s Nicolas Maduro issued a coin dubbed Petro, which was pegged on the national reserves of major commodities that included oil, diamonds, and gold.
Majority of oil companies have already joined the wagon with most partnering with large banks with the aim of launching a blockchain driven platform to be used for commodity trading in November last year. However, the main goal for this move was to see the industry participants move from the use of papers to smart contracts.