Russia and China buying up gold may be setting the stage for a gold-backed cryptocurrency, suggests a former EU minister. However, such a scheme would still be inferior to Bitcoin, according to Russian economist Vladislav Ginko.
Russia Targets ‘Monetary Reset’
Russia was the biggest buyer of gold last year and has quadrupled its gold reserves over the past decade. In fact, the country has ramped up its buying spree in recent years, in particular, after US-led economic sanctions were imposed in 2014.
Notably, Russia’s central bank added 651.5 metric tons in 2018 — 74 percent higher than in 2017, according to the World Gold Council. It is estimated that the country now holds approximately 34,000 tons of gold.
But Russia isn’t alone. China showing similar behavior buying 32.95 tons of gold in Q1 2019.
So why are the two neighboring superpowers so bent on boosting their gold reserves?
Bruno Maçães, former Europe minister of Portugal, says that while there’s no formal coordination, the two countries can expect…