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Can bitcoin be an alternative to the dollar for oil contracts in the Middle East?



CoinDesk spoke to a few and asked if they are looking for alternatives to the dollar to buy and sell oil. And yes, bitcoin was also discussed.



03.Feb.20 9:36 AM
By Shawn Highstraw
Photo toinnov.com

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Can bitcoin be an alternative to the dollar for oil contracts in the Middle East?
Last week the elite of the world made their annual pilgrimage to Davos in Switzerland to explain to the rest of the world how to best run the world centrally. This year, the elite that visited the World Economic Forum decided to draw up a "Bill of Rights" for the industry.

The visitors mainly consist of rich businessmen and regulators, from all parts of the world. CoinDesk spoke to a few and asked if they are looking for alternatives to the dollar to buy and sell oil. And yes, bitcoin was also discussed.

According to Egyptian businessman M. Shafik Gabr, chairman of the ARTOC Group, several Middle Eastern countries are investigating the possibility of entering into oil contracts in bitcoin. Unfortunately he did not tell which countries this is. Another Egyptian, Ahmed Heikal, CEO of Qalaa Holdings, is pessimistic about bitcoin because there is not yet a legal framework for such big deals. If countries or energy companies start using bitcoin, this will only be ten years from now.

Politicians from Oman also spoke negatively about bitcoin to deal with oil contracts. But when asked about ways to get out of the economic pressure of the United States, the answer was less resolute: "Depends on who asks."

Back to that Bill of Rights. That document is prepared by people who benefit from central management bodies of meat and blood (but hidden behind companies that take away any form of liability from those same people). That is of course against everything bitcoin stands for. Internet pioneer David Dana Clark already articulated this in 1992:

We reject: kings, presidents and voting. We believe in: rough consensus and running code.

The responses to bitcoin and fiat other than the dollar are mixed but the implications seem very clear. A large part of the world is considering settling oil contracts in everything but the US dollar. We have seen this trend grow for years and have accelerated due to China's desire to handle oil contracts in their own currencies.

In a world where the US dollar is used as a weapon to suppress hundreds of millions, if not billions of people, it makes sense for the world to look for alternatives. That alternative could come from China, but it carries the same risks as the dollar, namely political interference.

Bitcoin is that apolitical alternative.



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