Notes From WEF: Oil-Producing Nations Want Dollar Alternatives, Just Not Bitcoin

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According to Egyptian businessman M. Shafik Gabr, chairman of the ARTOC Group for Investment & Development, some Middle Eastern nations are already exploring the possibility of settling oil contracts in bitcoin.

Fellow Egyptian investor Ahmed Heikal, CEO of Qalaa Holdings, said he's not bullish on bitcoin because it "Doesn't have the legal framework" for such wholesale deals.

Delegates from Oman to the United Arab Emirates and Saudi Arabia all expressed similarly dismissive views about bitcoin as an asset, often referring to it as a gambling conduit.

"Until bitcoin is regulated like the stock market, I don't see that happening."

Leaders and businessmen still don't "Trust" cryptocurrency, Jafar said, and he expects central banks would push back if bitcoin gained more significant usage.

If oil contracts were to be settled in currencies beyond the dollar, Jafar said that might be driven by political factors related to Russia and China.

"The traders of oil and gas are using leverage. That leverage must be backed by financial systems. Regions, like Iran may use bitcoin or other payment systems. But other countries that don't have this problem may play an important role in national settlements."

One of China's most revered bitcoiners, Wang Wei, a leader of nearly a dozen associations from the Shanghai Stock Exchange Corporate Governance Advisory Committee to the China Mergers and Acquisitions Association, said bitcoin lost its chance to be the dominant currency for settlements and will instead primarily be a store of value.

Adambekov said his exchange aims to support tokenized oil and gas options, settled in national cryptocurrencies yet offering bitcoin liquidity.

From China to Oman, all businesspeople and diplomats agreed the dollar will remain king in commodities markets for the near future.

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