Indian foreign ministry seems reluctant in Venezuelan offer of petro-backed Cryptocurrency payment

Venezuela has the world’s largest oil reserves for any nation and announced its oil-backed cryptocurrency, the petro, in December in what would soon become the world’s first state cryptocurrency. Sources report that it is devised as a payment instrument to confront the economic sanctions and a US-led financial obstruction, the cryptocurrency has seen plenty of criticism from within the country. In March, Venezuela’s National Assembly declared the ‘unconstitutional’ petro ‘a fraud’.

Despite being offered a reported 30% discount in crude oil imports from Venezuela for payment in petro, India has no plans to use the South American nation’s cryptocurrency after being hindered by its central bank crypto curbs.

Indian foreign minister Sushma Swaraj was addressed reporters during a news conference this week when she was asked about a Venezuelan trade deal involving crude oil and a reported discount of 30 percent contingent on the purchase being made with the petro, Venezuela’s state cryptocurrency. The Indian foreign minister responded that the country doesn’t intend to utilize this for trading oil, citing an order from India’s central bank which does not permit trade using cryptocurrency.

The Sources from Indian office reportedly stated:

“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.”

The Reserve Bank of India (RBI), proclaimed a policy back in April instructing financial institutions come under the umbrella of the Indian central bank regulations are forbidden from dealing in cryptocurrencies. Subsequently, banks and its their clients & users were also barred from providing services to businesses “dealing with or settling” cryptocurrencies.

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