Oil and gas financing strategy in the framework of cryptocurrencies

Document Type : Original Article

Authors

1 Ph.D Student of Energy Economics, faculty of Islamic studies and economics, Imam Sadiq University, Tehran, Iran

2 professor of economics, faculty of Islamic studies and economics, Imam Sadiq University, Tehran, Iran

Abstract

Choosing the best method of financing about projects is the most important factor in industries functions. Nowadays global economics’ general constraints, fiscal resources scarcity and non – optimum method of allocation in resources had appeared the necessity of introducing new titles in finance. Since bitcoin was introduced, theorists began to studying the feasibility of designing and establishing new financing patterns on the blockchain platform and the use of cryptocurrencies. The establishment of platforms based on blockchain and its replacement with existing mechanisms will have undeniable effects on reducing operating costs and enhancing transparency in various industries and businesses. This research, focused on the upstream sectors of the oil and gas industry. The results show that the use of emerging blockchain technology capabilities, provides the possibility of using new generation of international financing method using cryptocurrency. The oil-backed cryptocurrency is the main crypto asset in this framework. This cryptocurrency's value is equal the barrel of crude oil.

Keywords

References

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Economic Strategy
Volume 9, Issue 34 - Serial Number 34
October 2020
Pages 133-164

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