PetroDollars: Compliant Reserve Cryptocurrency For Gas & Oil?
PetroDollars is a digital currency that is completely regulatory-complaint and it’s supported by oil and gas reserves which are indepently certified and proved recoverable. Crude oil and natural gas are two of the most universal liquid and widely traded goods, as well as being vital energy resources.
PetroDollars allows users to use a transparent peer-to-peer exchanged digital currency that is backed by the value of these vital resourses – crude oil and natural gas.
PetroDollars aims to become the world’s top safe-haven tokenized store of value. Each PetroDollars token is linked to verified and existing real world assets. This makes PetroDollars ideal for preserving wealth for investors of digital and fiat currencies who are seeking to avoid loss or lock in their gain by holding and transferring intrinsic value in digital form.
PetroDollars are also ideal as they enable holders to not only preserve their wealth while engaging in commercial transactions but also to avoid the inflation, devaluations and volatility linked with other digital or fiat currencies.
PetroDollars Compliance to Laws and Jurisdictions
PetroDollars developers aim to ensure it complies with all the applicable laws of the U.S. and other jurisdictions. This includes the issuance of PetroDollars, the transfer of PetroDollars and the maintenance of PetroDollars.
Its financial statements as well as its oil reserves will all be prepared in line with the U.S. generally accepted accounting principles or other similar jurisdiction standards. This may also be subject to audit by a leading international accounting firm. PetroDollars will also maintain record keeping and boost transparency to enable all sellers, purchases and holders of PetroDollar to adhere to their respective tax reporting obligations.
PetroDollars Tax Obligations
There is a stark contrast between PetroDollars and U.S. based oil exchange traded funds (ETFs). ETFs currently require holders to file annual tax and adhere to tax reporting obligations owing to allocations of income related to the EFTs’ oil holdings. PetroDollars on the other hand, like other digital tokens, is anticipated to be treated as a currency in its different jurisdictions for income tax purposes. Income from PetroDollars’ operations such as support of oil reserves will not be allocated to PetroDollar holders.
Due to this structure, holders of PetroDollars are expected to be exempted from annual tax but they will be subjected to tax upon any gains or losses from their PetroDollars sales. By differentiating PetroDollars tax attributes from the tax attributes of their underlying oil reserves, PetroDollars makes a significant change in tax treatment. It represents the formation of a new and unique financial instrument with potentially favorable tax treatment and return profile for both U.S. and non U.S. investors.
PetroDollars is expected to be ran on the Ethereum-enabled blockchain technology. The blockchain technology is ideal for providing a strong decentralized means of tracking, verification and exchange.
This is because the blockchain can provide a digital global ledger that is auditable and secured using cryptography and will facilitate transactions with other familiar fiat and crypto currencies and assets. Primarily, PetroDollars represents the peer-to-peer transferability of digitized commodity value.
PetroDollars has several benefits to its holders. Foremost being its unique structure. Secondly its verified intrinsic value and market stability offers significant economic benefits to sellers, purchasers and holders.
It’s expected to be a unit of account, reliable store of value and a medium of exchange. It will permit holders of national or digital currencies to lock in gains and shield against currency devaluation and inflation. PetroDollars is also anticipated to be a tax advantaged economic proxy for oil investments and other commodities.
PetroDollars’ emphasis on transparency and regulatory compliance makes it a leading safe haven digital reserve currency. Its tax advantages, intrinsic value and reliability makes it attractive to investors and consumers globally.