ForexMinute.com – BitReserve, renowned Bitcoin-based financial system, plans to launch a service that will literally transform the way we look at the modern’s world commodity oil, by making it spendable like any other currency.
The company proposed Bitoil™, a sort of digital currency backed by oil. It simply means that anyone can spend, or hold, their value as oil, and can even transfer it like a traditional currency. “For the first time in history, oil will become a form of payment and compete against all major global fiat currencies.”
Bitoil™ is quite similar to BitReserve’s recently launched service Bitgold™ – a digital currency backed by Gold bullion. Except in this case, the underlying value of the oil will be convertible to five currencies, including Bitcoin and Gold, at a rather cheap rate. The company is also hoping to attach other commodities to Bitoil™, such as silver and palladium.
“Whether you are a consumer looking to hold money that’s tied to gas prices, or a business with a large portion of your expenses in oil related activities, Bitreserve’s Oil Card gives you yet another welcome currency option for holding and spending digital value,” the company’s blog reads.
The company however didn’t leak-out any information regarding their would-be partners from the oil sector, nor did it discuss anything about the form in which they will hold the oil reserves (ETF, stocks, ETN, etc.) We though hope that such crucial details will begin to appear in 2015, the year in which BitReserve is planning to release Bitoil™ services.
Meanwhile, we will have to wait for the Bitcoin Conference in Dubai next week, where the company’s founder and CEO Halsey Minor is scheduled to speak.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org