According to a report by the World Gold Council, central banks have been buying more gold this first quarter than they have in the previous six years. The efforts to diversify away from the US dollar are being led by China and Russia.
With a clear global appetite for store-of-value-type assets that are not connected to the dollar, the question remains, when will it emerge that banks are buying Bitcoin?
When Will Central Banks Stockpile Digital Gold, aka Bitcoin?
The World Gold Council estimates that gold held in reserves rose to 145.5 tons during the first quarter of 2019. This represents an impressive 68 percent increase from the figure reported for the previous year.
In the report, the council states that Russia continues to be the largest buyer of gold. The nation is known to be reducing its dependence on the US dollar by diversifying into other assets.
Bloomberg reports the World Gold Council’s head of market intelligence, Alistair Hewitt, to have stated:
“We’ve seen a continuation of the strong demand from central banks… We’re expecting another good year for central bank purchases, although I’ll be pleasantly surprised if they are to match the level seen in 2018.”
Along with China and Russia, the nations stepping up their gold hoarding include Kazakhstan, Turkey, Ecuador, Qatar, and Colombia. The report notes that a common theme amongst these nations is the fact that they all want to reduce their dependence on the US dollar.
Clearly, there is great hunger around the world for an asset that can be used effectively as a hedge against the dollar. This begs the immediate question: When will it emerge that central banks have been hoarding Bitcoin.
RT’s Max Keiser highlighted this via Twitter earlier today:
— Max Keiser, tweet poet. (@maxkeiser) May 3, 2019
He speculates that the scarcity of gold will eventually force…