Venezuela has filed a legal suit against the Bank of England for withholding its gold. The said gold is worth $1.5 billion. The president of Venezuela Nicolás Maduro is seeking to cash in on this gold. The reason behind this is to help ease the economic pain facing his country following the outbreak of COVI-19.
Although the Bank has failed to comment on the matter, it is important to note that the government of England does not recognize Maduro as the legitimate leader of Venezuela. At the face of it, this looks like its the main reason the bank is holding back.
A spokesman has noted this about the situations:
“The Bank of England has a moral imperative to allow Venezuela to sell the country’s gold to allow the UNDP to effectively assist the Venezuelan population in the fight against Covid-19,”
What This Reminds Us About Gold
The Bank of England refusing to hand out the Gold has been a reminder of the Gold confiscation of 1933 by U. President Roosevelt. The president ordered all gold coin production to cease and all 1933 minted coins to be destroyed. And guess what, now the government can do even more than this.
Under the current laws, in a national crisis, the government can cease all gold bullion. So while the asset has been used for hundreds of years as a safe haven, it happens not to be so safe. The government can easily take it away.
Bitcoin Is The Answer
This is the reason only Bitcoin can be the only true safe haven. However, it is the digital gold and one that cannot be touched by the government. Its decentralization means it cannot be shut, manipulated, or confiscated.
But remember, not your keys, not your coins. Every Bitcoin holder must ensure their Bitcoin is in a personal wallet in which he has the keys to access. Bitcoin left in exchanges can be confiscated and or lost as we have seen over the last few years when CEOs have scammed investors or died without passing on the keys.