China and Russia Hungry for Hard Assets, Could Bitcoin Benefit?
Central banks hoarding gold is thought to be accounting for a lot of the buying pressure sending the price of the precious metal upwards recently. Such a hunger for hard assets may one day see banks stock piling Bitcoin as part of their de-dollarisation efforts.
Central banks in both Russia and China have been identified as major buyers of bullion this year. The two nations are believed to be in the process of diversifying their reserves in the face of sanctions and the ongoing trade war with the US.
When Will Central Banks Recognise Bitcoin as Sounder Money than Gold?
According to an article in , economists from the Australia & New Zealand Banking Group Ltd. believe that both and central bank will continue gold in the coming years.
One representative of the group stated that restrictions on China associated with the ongoing trade war with the US and economic sanctions on Russia will encourage the major world powers to continue diversifying their reserves. He added:
“Also, with increasing political and economic uncertainty prevailing, gold provides an ideal hedge, and will therefore be sought after by central banks globally.