Will Cryptocurrencies Reshape Oil Trade & undermine Petrodollar?

Okay, even before I say anything, this is all based on rumors but it does makes some sort of sense. Apparently, bitcoin and crypto currencies are going to become big challengers to the Petrodollar, if Russians have anyting to do with it.

It was that way in the past. But it is not now. That said, however, getting out from underneath the petrodollar gives a country independence to begin building financial architecture that can be levered up over time to threaten the institutional control it helped create.

U.S. foreign policy defends the petrodollar along with other systems in place – the IMF, the World Bank, SWIFT, LIBOR and the central banks themselves – to maintain its control.

The main oil producers, however, can escape this control simply by selling their oil in currencies other than the U.S. dollar. That’s not enough to dethrone the dollar, but, like I just said, it is where the process has to start.

And that is a big problem for the U.S.