Are Digital Currencies Entering the Oil Industry? ECB More and More Inclined to Digital Currencies

    A few days ago, Dietsmann, more than 40 years old oil and gas giant from Netherlands, entered the blockchain world. They didn’t announce the news by themselves. A company named Modex introducing the launch of its blockchain-based database platform.

    Peter Kutemann, president and founder of Dietsmann, explained that blockchain will “significantly benefit the company,” opening new ways of collaborating with the company´s main clients and suppliers. He added that blockchain is one of the cutting-edge technologies that will “significantly benefit Dietsmann’s Data Lab, help them secure their information, and open new ways of collaborating with clients and suppliers.”

    So far, this is not groundbreaking news. As we see it, it is just about data processing – but slightly differently. Blockchain is a big, buzzing word. It doesn’t necessarily mean some key progress; especially when used in combination of words “introduction” and “readiness” (instead of reporting of some case).

    Russia’s oil industry and Facebook’s stablecoin

    Igor Sechin, ex-Deputy Prime Minister of Russia in Putin’s cabinet, and the Executive Chairman of Rosneft, the Russian state oil company, announced the welcoming of Google and Facebook in the oil industry. The news was announced at the St. Petersburg Economic Forum.

    Would that be the beginning of the penetration of American technological leaders into the oil and gas industry? It is about, he said, “in particular about Google, Apple, Amazon, and Facebook.”

    Sechin also talked about the development of alternative forms of transport, including ecosystems of the “sharing economy”, and the development of universal technological solutions for processing large amounts of data.

    Well, a lot of people will scratch their heads if the Facebook´s coin will be used, among other applications, for valuing barrels of Russian oil…

    Many agree that the biggest advantage of Facebook´s stablecoin is a base of current users. A lot of people have already installed required Facebook apps. Also, Facebook users might – presumably – more trust Facebook than financial institutions of their own country, although Libra would be not so warmly welcomed as its founders expected.

    Before anything happens, Russia must first decide about crypto and digital currencies. They seemingly change their minds a lot. The Central Bank of the Russian Federation expressed an opinion that cryptocurrencies are not store of value, settlement or a means of payment, as Putin said, because these currencies are not secured by anything.

    At the same time, Putin set a relatively short, four-month deadline for tangible cryptocurrency regulations. As it was expected, the deadline set for July 2019 didn’t stick. But as a known bitcoin skeptic, Putin softened a bit his not-very-inclined view on crypto. Consequently, no one can tell you today with certainty if Russia is welcoming bitcoin or it is against it.

    But this likely not the biggest problem when comes to crypto and digital currencies in general, though. Similar to China, Russia is considering having an “ultimate firewall” or “internet iron curtain” that will censor the incoming and outgoing world-wide-web content heavily. Similar to the one China has. The Russian Duma has already approved the bill for it.

    Project Phoenix8 about to issue an industry coin, handy for buying fuel

    Now back to the oil. Something is going on for sure there because PP8 Corporation Ltd. from London, UK, is about to launch their industrial coin. Their factory, called Project Phoenix8, is about to be built.

    They already launched a brand-new website, but it is password protected. “It is mainly for our early contributors from a private sale. We need to have some platform to inform them about the progress of the project,” explained Roberto Hroval, the founder and chairman of the company.

    Let´s recall, Project Phoenix8 is a waste-to-energy plant, based on the latest, three-patents-ready technology, called Product Reincarnation Technology™. It transforms scrap plastic and waste tires into basic ingredients, with more than 98% of garbage monetization and more than 85% of energy efficiency.

    The process is 100% green, with no emissions whatsoever. “We will sell our tokens on classic crypto exchanges. Buyers will choose between keeping the tokens, selling them, or buying fuel with them,” added Hroval.

    Now, Europe would like to have their own digital currency as well…

    Speaking of Europe, they gradually developed their opinion about digital currencies. French finance minister Bruno Le Maire expressed his concern that Libra might come with “inherent risks for consumers and even the sovereignty of European states”, reported Reuters.

    German federal minister of finance, Olaf Scholz, supported Le Maire. “France and Germany consider that the Libra project, as set out in Facebook’s blueprint, fails to convince that those risks will be properly addressed,” they said at a meeting of eurozone finance ministers in Helsinki.

    Le Maire said that the European block needs to focus on reducing the cost of cross-border payments. After all, transferring funds across international borders often means big transaction fees, along with additional losses from unfavorable exchange rates. He announced that he would discuss the feasibility of a European public digital currency later in October.

    Almost identical observations repeated at the hearing on the topic of “Digital currencies, focusing on Libra”. It happened at the German parliament on September 25.

    Benoit Coeure, a European Central Bank (ECB) board member and chairman of the Committee on Payments and Market Infrastructure, expressed that global payment systems still face two big problems: access and efficiency of cross-border retail payments.

    Libra is “a wake-up call for central banks”, he added. One of the possible solutions could be a “EuroCoin”, a European central bank´s digital currency.

    It makes sense. Why support Libra if Europe can develop their own digital currency – and have a piece of a pie, right?

    If big banks have no other plans on how to keep their clients – especially the youngsters –digital currency is almost a must. But we have no idea what the “big bosses” are up to.

    Maybe the Libra would end up as a test vehicle to see how much people are open to accepting it. Remember Steve Jobs? He didn’t introduce the smartphone until texting reached the critical mass. He had a phone ready, but he waited. Smart move… Not wanted to be a pioneer, but rich.

    The similar scenario might be going on right now regarding digital currencies. Let´s wait and see.

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