China Bolsters Gold Reserves Amid Bitcoin Safe-Haven Debate
China has been expanding its gold reserves by purchasing large amounts of physical gold. The People's Bank of China added 20 tons of gold in July, marking its biggest monthly purchase since late 2023 and extending its gold-buying streak to 21 straight months.
The bank's total official holdings now stand at a record 2,366 tons. This move shows China's strong institutional desire for real assets with zero debt risk, despite its strict rules against crypto trading.
Meanwhile, debate continues over whether Bitcoin (BTC-USD) can be considered digital gold. Former IMF economist Robin Brooks questioned the token's safe-haven status, pointing out that it failed to follow gold price gains in recent weeks.
Crypto experts disagreed with this view, however. Bitwise researcher Jeff Park noted that Bitcoin has historically done well during different shifts in bond yields, while macro investor Raoul Pal argued that Bitcoin follows total global money supply rather than safe-haven demand.