India Won’t Pay Venezuela for Oil with ‘Petro’

Although being proposed a 30% discount for payment in petro in crude oil imports from Venezuela, India won`t use the South American cryptocurrency
31 May 2018   1737

This week Indian foreign minister Sushma Swaraj was interviewed by the reporters during a news conference about a Venezuelan trade deal involving crude oil and a reported discount of 30 percent contingent on the acquiring being made with the Venezuela’s state cryptocurrency - petro. The Indian foreign minister declared that the country has no plans to use the petro in buying oil, referring a directive from India’s central bank which does not admit trade using cryptocurrency.

We cannot have any trade in cryptocurrency as it is banned by the Reserve Bank of India. We will see which medium we can use for trade. India follows only UN sanctions, and not unilateral sanctions by any country.
Sushma Swaraj
Foreign Minister, India

RBI (The Reserve Bank of India), India’s central bank, claimed about a harmful policy in April mandating RBI-regulated financial establishments ban their customers and users from buying cryptocurrencies like Bitcoin. Banks were also prohibited from providing services “dealing with or settling” cryptocurrencies. Though it isn’t directly stated that the ban extends to transactions settled in cryptocurrency, there is no surprise in the Indian government choosing not make a trade deal in the petro despite the significant discount suggested.

Developed as an instrument for payments in order to contend the economic sanctions and a US-led financial blockade, Venezuela’s petro has faced a lot of criticism from within the country. In March, the National Assembly of Venezuela claimed the ‘unconstitutional’ petro ‘a fraud’.

India isn’t concerned about US sanctions facing Venezuela and Iran, the latter which has now become India’s top crude oil supplier. Indian Foreign Minister also affirmed that the country would continue trading with Venezuela in spite of oil imports from the South American nation being at their lowest levels in over five years.

PBoC to Continue Anti-Crypto Propaganda

The regulator published a warning in its WeChat account called “Protection of the rights and interests of consumers of financial services”
23 March 2020   158

The People's Bank of China has returned to criticism of cryptocurrencies amid a worsening economic situation in the world.

On March 22, the regulator published a large-scale warning in its WeChat account under the heading “Protection of the rights and interests of consumers of financial services”. It describes three ways in which cryptocurrency service providers can mislead consumers.

First of all, the amount of fraud transactions with bots is serious. The average turnover rate of the top three overseas crypto currency exchanges is much higher than that of foreign licensed exchanges. Second, market manipulation exists in these exchanges where forced leveraged trading eventually causes the exchanges to explode. Third, money laundering is a big issue.


People's Bank of China

In addition, the Chinese Central Bank calls the opinion that Bitcoin may serve as a protective asset, erroneous. The regulator indicates its high volatility and recommends that citizens not follow the example of other investors and refuse to participate in cryptocurrency trading.