Saudi Aramco, one of the biggest oil exporters in Saudi Arabia has invested $5million in a blockchain based oil trading company. The company has also denied the claims that they are working on bitcoin mining activities.
Saudi Arabia’s biggest oil exporter, Saudi Aramco, has uplifted the interest of many crypto investors last year. It is because the company had invested $5million in blockchain-based oil trading company Vakt.
With the $5million investment, VAKT will now have 13 shareholders. The capital will be used to develop the platform further and expand it to Asian markets. Aramco trading will bring its North Sea Trading volumes, further boosting the platform.
Aramco has a strong record of investing in industry innovation. It had an IPO of 1.5% of the stock, taking the organization to a valuation of $2 trillion.
This move is aimed to digitize and streamline post-exchange processing, Saudi Aramco has become additionally rumoured to begin bitcoin mining activities.
However, rubbishing the news of bitcoin mining, the company has made an official announcement to dismiss the rumours around bitcoin mining doing the rounds. The statement said, with the recent statement that the company will start bitcoin mining, Aramco confirms that these claims are completely false and inaccurate.
No to bitcoin mining
Bitcoin mining has been under the lense since many governments have unleashed the crackdown on many home-grown crypto mining activities. This has forced businesses to take refuge in other crypto-friendly countries.
Meanwhile, Middle Eastern Countries like the United Aran Emirates and Saudi Arabia continue to test the latest innovation in cryptocurrency. To legally function inside the country, the Central Bank of Bahrain has recently issued a license to the in-house crypto exchange.
Saudi Aramco has been investing in cryptocurrency for a long time. It has an extensive history of investing in blockchain firms. The company’s subsidiary has signed a deal of $6million with Data Gumbo Corp. for growing a business blockchain network.
Unlike all other Central Banks all over the world experimenting with their digital currency and UAE is also following suit. The Central Bank of UAE has made an announcement recently about its 2023-2026 strategy that highlighted concrete concepts to experiment and launch an in-house digital currency. As a part of this initiative, the UAE authorities intend to put in force a virtual identification device to reinforce economic inclusion and get easy access to economic services.