Bitreserve, a financial services provider based in South Karolina, is going to add a new commodity that can be transacted within the cryptocurrency network like other currencies. Called Bitoil, the new service will allow people holding their value in oil. Bitoil is a new form of virtual currency that is backed by oil and is easy to use.
“Whether you are a consumer looking to hold money that’s tied to gas prices, or a business with a large portion of your expenses in oil related activities, Bitreserve’s Oil Card gives you yet another welcome currency option for holding and spending digital value,” Bitreserve’s Carl Weir wrote in its official blog.
He continued: “Oil has a massive and direct impact on the global economy, and a currency that tracks oil prices could become one of the world’s most widely used digital currencies. For the first time in history, oil will become a form of payment and compete against all major global fiat currencies. Using Bitreserve’s Oil Card, anyone can hold their value as oil — the fuel for the modern world economy — and transfer that value instantly and for free.”
Betreserve has recently added a similar service called Bitgold, a cryptocurrency backed by gold. Unlike Bitgold, the new oil commodity can be converted to five different currencies, including dollars, euros, pounds, yuan, yen, together with gold and bitcoin. Besides, the firm is planning to include more commodities, including palladium and silver.
The company expects Bitoil to change businesses dependable on oil, such as trucking, shipping fleets and airlines. The Oil Card will present certain opportunities for ordinary users too.
“For the individual, the Oil Card allows consumers to hold money in a form of value that is tied to expenses that take advantage of the value of oil when it is at low prices, like gasoline and heating oil. Imagine having a gas card that lets you fill up your tank for half the cost of the present day’s gas/oil prices.”
Given the huge impact oil has on the world economy, the new digital currency has a potential to become one of the most popular cryprocurrencies.
Bitreserve has not revealed any information about the companies it has partnered with. The company’s CEO, Halsey Minor, will be participating at the Dubai Bitcoin Conference that will be held on December 13th, 2014. Minor is going to speak on Bitcoin, but will likely shed more light on Bitoil as well.
Although the exact date of the new service’s release is unknown, the launch is planned for the next year.
Bitreserve pitches itself as enabling ‘members to escape Bitcoin volatility by holding bitcoin as stable, real-world money, but to still spend their money as Bitcoin.’ It similar to competitors like BitPay and Coinbase, offering conversion between Bitcoin and currencies including the U.S. dollar.
However, transparency is a big part of the push by Bitreserve to stand out from the crowd: it publishes a real time proof of solvency, enabling “anyone at any time to confirm our solvency and ensure that his or her value is safe.”
Bitreserve has recently raised over $8 million and growing through investment crowdfunding platform CrowdCube.