Russia is one of the world's largest holders of physical gold in reserves, what does this have to do with bitcoin?
Immediately, a number of leading Russian media outlets published the opinions of experts that the reduction in interest rates in the USA and the EU, as well as the “trade war” of the USA and China lead to the fact that not only gold is becoming more and more attractive to investors, but also Bitcoins, which some of the participants in the classic financial market are beginning to perceive as "new gold."
Indeed, the monetary easing policy pursued by the US Federal Reserve and the European Central Bank (ECB) in such a way that the yield on even 30-year US debt securities, which usually was above 3%, is increasingly looking to fail at a 2% level . All key US and EU stock indices began on August 15 with a fall.
Oil is also getting cheaper, which in annual terms fell by 15%. Against this background, gold shows a noticeable increase: from the beginning of the year – by 18.7%. Russia, as you know, has one of the largest reserves of gold in the world, however, the appearance in the information field of large media outlets that Bitcoin may become a kind of “new gold” looks very trendy.
For Russia, the situation becomes specific due to the fact that gold has a tight binding to dollar prices for it, and this does not fit into the strategy to reduce the dependence of the economy and the financial sector on payments in American currency, which is being carried out.
In this regard, bitcoin, which also has a dollar price, is much less tied to the American dollar, since significant amounts of transactions with this cryptocurrency are carried out in South Korean won, Japanese yen and the euro, and in this series a place for the Russian ruble may also be found.
Nevertheless, so far the issue of regulating cryptocurrencies in Russia has not been worked out despite the fact that Russian President Vladimir Putin signed the corresponding order.
Publication date 08/16/2019
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