Russia and China Increasing Gold Reserves

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In what has been called the ‘ new international gold rush, ‘ Russia and China are leading the world in buying gold. ‘ This comes at a time when there is plenty of speculation about a gold-backed digital currency being released by the two countries.
Both countries have significantly increased their gold reserves over the past few years, with the trend only rising in 2019. In an attempt to unpack the dollar from world markets, the two nations may soon unveil a new concept that has never been done before by any government— issuing a gold-backed cryptocurrency. A gold – backed digital currency is all being prepared for the gold rush of the past few years, according to former Portuguese European Minister Bruno Marcaes. Such a plan would be in line with both countries ‘ desire to raise the US dollar as the world’s reserve currency.
In their complaints about the dollar, Russia and China were no longer able to fulfill their role as a global currency. It seems that blockchain is now becoming a more viable alternative, particularly based on real-world assets such as gold blockchain systems. A game – changer would be an international gold-backed cryptocurrency in the geopolitical control race. Naturally, if this idea came to fruition, a country with larger gold reserves would have more influence. That’s why it makes sense to buy so much gold from China and Russia that they want to be the first to institute this new monetary system and, as a result, have significant global influence. It would combine gold stability with blockchain security, while also acting as an impartial arbitrator of global markets and value.
While gold is intuitively the most tangible asset to be tied to by global value, there is an alternative. Why not use Bitcoin as the world’s reserve currency? This would butt heads with Russian and Chinese proposals. They will have to start stocking up for one on Bitcoin, which may be difficult to do quietly. This would force the price to explode upwards as well. Moreover, Bitcoin is less concrete than gold, which is a concern to some.
Gold has its own share of concerns, however. Gold is a risky asset, for one thing, most owned by the U.S. As a presidential Putin Academy analyst noted, a fresh round of sanctions against Russia could easily put an end to their gold-backed vision of cryptocurrency.
Nevertheless, this new “gold-rush” is picking up steam. If China or Russia goes gold, cryptocurrencies could actually as become globally and geopolitically significant. Only time will tell what is to come of Russia and China’s robust and respective gold reserves. Will the United States follow suit, investing in more gold and shifting toward cryptocurrency at long last?

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