Winklevoss idea is inserted in the context of the Bank of England (BoE) refusing to release Venezuela’s gold wealth
The surprising prediction made by one of the ‘Bitcoin billionaires’ was related to news about the Bank of England (BoE) that refused to release $ 1 trillion in Venezuela’s gold reserves.
Holding gold hostage
Venezuela had relied on the UK’s central bank for decades to store its gold reserves, but gaining access to its theft-proof safes proved to be extremely difficult.
As the American and British governments consider President Nicolas Maduro an illegally elected official, the BoE is not rushing to hand over the gold to the dictator whose mistake caused an economic disaster in Venezuela (according to the BoE’s understanding).
The Maduro regime, which remains under debilitating Western sanctions, is struggling to deal with the ongoing pandemic that has greatly affected the country’s weak health system.
In an attempt to seize its wealth in gold, Caracas recently filed a lawsuit against the BoE, claiming it needs its reserves to fight the deadly virus.
Governments can turn to Bitcoin
Tyler Winklevoss apparently believes that Venezuleula’s legal fight with the BoE could cause governments to ‘rethink’ their golden strategies in favor of Bitcoin, a decentralized and non-confiscating cryptocurrency.
For example, the Reserve Bank of Australia (RBA) keeps almost 80 tons of the precious metal in London safes.
In order to decrease their exposure to the US dollar, China and Russia have been aggressively increasing their gold reserves for decades. The two countries also act as Venezuela’s main creditors, hit by hyperinflation, which has granted it more than $ 90 billion in loans and investments.
According reported Today, RT host Max Keizer suggested that China and Russia could add Bitcoin to their strategic reserve on top of gold.