The gradual acceptance of digital currencies, with major exchanges about to launch bitcoin futures trading, may prompt some oil producing nations to ditch the US dollar in crude trade in favor of cryptocurrencies, an oil analyst says. Russia, Iran and Venezuela have more than one thing in common. All three are major oil producing nations dependent on the dollar, since the global crude market is traditionally dominated by contracts denominated in US currency. Moscow, Tehran and Caracas are also facing US sanctions; penalties which are proving effective since the sanctioned countries are dependent on the US dollar to sell their crude.
Cryptocurrencies provide yet another advantage to countries facing international sanctions.
They are anonymous and decentralized, which limits the effect of US economic sanctions on trade deals for countries like Russia, Iran and Venezuela.
We'll soon find out I believe which way this is going to go - and hold on when they do change over to cryptocurrencies