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PetroDollars, Digital Tokens Backed By Oil And Gas Reserves, Promises New Financial Ecosystem

Originally published on: CCN
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March 09, 2018


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PetroDollars marks the first regulated currency supported by oil and gas reserves. As digital assets linked to existing, verified real world assets, PetroDollars will enable owners to acquire, hold and transfer intrinsic value in a digital token form.

Because crude oil and natural gas are the most globally liquid and traded commodities, the PetroDollars team envisions establishing one of the largest digital currencies and a financial ecosystem that will support a global consumer and commercial bank, with asset management and wealth management offshoots. Its goal is to be the world’s leading tokenized store of value, allowing the holders of both digital and fiat currencies to preserve wealth.

Each PetroDollars token in circulation, post-ICO, will represent the net recovered value of more than 10 recoverable reserve barrels of crude oil or its natural gas equivalent.

The token offers a unique financial instrument with potentially favorable tax treatment for investors.

Versatile Tokens

The currency will be driven by Ethereum enabled blockchain technology, allowing it to facilitate transactions with other currencies, both fiat and crypto. The tokens, built on the Ethereum ERC20 protocol, will be exchangeable for major fiat currencies and other cryptocurrencies.

As digital tokens, PetroDollars will be capable of widespread adoption for use in cross border commercial transactions, in addition to other uses.

The tokens will be tradeable globally outside of the traditional banking system, and are designed for both consumer and business use in anonymous transactions.

Foundation For Cryptocurrency Bank

The team is currently exploring the creation of a true cryptocurrency bank, servicing all PetroDollars token holders, in addition to its commercial banking and trade finance customers. Credit and debit cards will be available through the bank, along with a full suite of other online global banking services.

PetroDollars has the support of a proven banking and technology team. There will be significant investments made in ongoing R&D to support the unique technology, which the team considers to be technologically superior to most other cryptocurrencies. PetroDollars will also make large ongoing strategic investments in quantum computing applications and AI, as well as a project to develop a technology platform that could render blockchain itself obsolete.

The technology will include multiple security features to prevent the possibility of token theft.

Mobile apps will be developed to facilitate global payments and transfers, as well as for payments of all sorts of goods and services. The apps will facilitate high speed, economical global fund transfers. The group also said it may offer funds transfer and payments services as a free service to token holders, depending on how the overall business and revenue model develops.

Future applications will address the retail, health care and other sectors. There is already an encrypted global messaging app pending.

Unlike most cryptocurrencies, PetroDollars will offer 24/7 customer support.

500 Million Tokens

The token supply will be hard capped at 500 million tokens, 450 million or so of which will be retained for future issuances and sales for cash, cash equivalents and hard assets that can be exchanged for proven oil and gas reserves.

Almost 15 million tokens will be issued to the group’s currently wholly-owned oil and gas company that will sell the tokens in the current Private Coin Placement, and larger follow-on ICO to raise funds for the development of the large energy reserves backing PetroDollars.

ICO Planned

A global ICO of up to 20 million tokens is planned for September, with no minimum target. Given the value of the underlying oil reserves, pricing could be upwards of $35 per token.

Following the ICO, each token will be backed by more than 10 barrels of proven, recoverable oil reserves.

The ICO is expected to increase PetroDollars’ adoption base to as many as 1 million holders, and make PetroDollars among the top 20 cryptocurrencies in terms of market value.

Any combination of U.S. dollars, Euros, Yen, bitcoin, Litecoin, Ripple XRP and Ether can be used to buy Petrodollars tokens.

The tokens are being sold in the current private round at only around 50% of the expected ICO price, meaning there is a huge price upside in the post-ICO market.

Because the tokens are linked to physical assets, they will have more price stability than other crypto tokens. Nonetheless, there will be significant upside in the price, given the significant oil and gas reserve base supporting the tokens, in addition to the global banking and advanced technology sides of the group.

The team has retained Reed Smith LLP, a global law firm, and will use Deloitte for auditing. The oil and gas operations, part of which may be publicly held, will be audited and will file quarterly and annual reports, and reserves and engineering reports with the SEC. Such reporting will provide additional layers of transparency to help token holders assess their underlying value of the physical assets backing the tokens.

For information, visit http://petrodollars.io/

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