New petro-backed cryptocurrency set to increase competition in global oil markets


A New York capital management company is set to break new ground on commodity investments by launching a new cryptocurrency, backed entirely by proven oil reserves.

Investment and holding company Signal Capital Management announced March 12 that it would launch the PetroDollar (XPD), a cryptocurrency backed by oil reserves, natural gas, and similar commodities. It also boasts to be the “world’s first globally compliant” digital currency, OilPrice reports.

The PetroDollar website touts that it will be “linked to physical assets and not thin air,” and will remain “more price-stable as a result”. The burgeoning currency is awaiting a regulatory private placement by US and foreign investors and should receive its first initial coin offering (ICO) by late 2018.

It has a market capitalization of $1.48 mln and is set to have an ICO of around $700 mln, professing to be one of the largest ICOs to date.

Investors will treat the PetroDollar as a currency and not an exchange traded fund (ETFs), circumventing some tax reporting obligations, and is “not expected to be subject to annual tax but instead will be taxed only upon any gains (or losses) from their sale of PetroDollars,” its official white paper reads.

The cryptocurrency also affirms to be “tradeable worldwide outside of the traditional banking system” and is “expected to be in Top 20 cryptocurrencies by total market value”. After the initial ICO, it aims to back each coin by over “13 barrels of proven recoverable oil reserves”.

However, it is not the first self-proclaimed “globally compliant digital reserve currency”. In December 2017, a team of former US regulatory commissioners, along with technology and banking experts, launched OilCoin, which uses the exact same maxim.

 

source: https://www.rt.com/business/421095-us-oil-cryptocurrency-launch/

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Author: Rayan M

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