Cryptocurrencies ‘Not Allowed’ In Trading, India Rejects Venezuela’s Offer

The Indian government once again on Monday maintained its earlier strict stance of cryptocurrencies in India when it rejected South American country, Venezuela’s offer of buying crude oil on a 30 percent discount if it was bought through cryptocurrency.

India made it clear that it has no intention to use Venezuela’s local cryptocurrency ‘petro’ in oil trade. Citing an order by India’s central bank, Foreign Minister Sushma Swaraj said that the bank does not approve of trade using cryptocurrency at a recent news conference when asked about India’s stand on buying oil from the South American country using digital currency .

Venezuela’s oil output is under tremendous pressure from the U.S. sanctions, and the country is therefore offering discount on oil sales done in ‘petro.’ Petro is the world’s first state-backed virtual currency. By bringing ‘Petro,’ their oil backed national cryptocurrency , the country is trying to rebuild its economy after being weighed down from debts running to millions of dollars. Officials from Venezuela seem desperate and are in the midst of visiting many countries to offer oil at discounted prices by using “Petro.”

The 30 per cent discount seems like an attractive offer considering that it recently touched a high of $75 a barrel. However, the Indian government is yet to accept cryptocurrencies in India as a legitimate form of transaction. India as of now seems adamant and disinterested in promoting or trading in cryptocurrency.

Indian imports of oil from Venezuela drops by 20 percent

Import of crude oil from Venezuela has dropped considerably and is at the lowest level in over half a decade. The oil imports were at around 300,000 barrels per day (bpd) between November 2017 and February 2018. This was a drop of nearly 20 per cent from the same period a year ago. In fact, it is the lowest since 2012, as per the data from shipping sources and industry. The situation is likely to improve only if the government eases its law on cryptocurrencies in India.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Smitha Nambiar is a highly experienced writer who believes in heavy research. She keeps looking for new updates related to cryptocurrency and helps her readers know about it.

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