Economist David Dodge Says Gold Is an 'Antique Instrument,' Thinks Digitizing the Canadian Dollar Is Interesting – Bitcoin News - Daily Bitcoin news

Economist David Dodge Says Gold Is an ‘Antique Instrument,’ Thinks Digitizing the Canadian Dollar Is Interesting – Bitcoin News


The economist David Dodge, the former seventh governor of the Bank of Canada, says gold is an “antique instrument,” and he believes Canada’s central bank got rid of its gold reserves for this very reason. Despite saying gold is an outdated financial tool, Dodge said that the leading crypto asset bitcoin (BTC) has no place in the Bank of Canada’s reserves.

David Dodge: The Bank of Canada ‘Holding This Antique Instrument of Stability Called Gold Really Didn’t Make Any Sense’

David Dodge, the former seventh governor of the Bank of Canada (BofC), thinks gold is an antiquated payment tool and that it’s costly to store. Dodge spoke with Kitco News correspondent David Lin on Thursday and discussed the shiny yellow precious metal.

According to Dodge, gold is an archaic instrument and Canada’s central bank was correct to get rid of it all. Canada is the only G7 nation that does not hold any gold reserves. The Canadian central bank’s gold selling trend started in the early 2000s and by 2016, Ottawa had sold most of its gold reserves.

“[The] issue is quite clear, that it costs to hold gold, whereas holding US or Chinese or Euro bonds yields you a return,” Dodge told Lin on Thursday afternoon. “…That was a strong view. And a view that our international monetary system was in a place that was sufficiently robust, that holding this antique instrument of stability called ‘gold’ really didn’t make any sense.”

Dodge Believes in Reducing Transaction Costs, Says the Issue of Digital Currencies ‘Is a Very Important Issue’

Canada followed in the footsteps of the United Kingdom when the region sold half of its gold holdings, or 395 tons of gold, between 1999 and 2002. UK citizens called the event “Brown’s Bottom,” named after the Chancellor of the Exchequer from 1997 to 2007, Gordon Brown. Canada getting rid of gold was dubbed “Poloz’s Bottom,” named after the ninth BofC governor, Stephen Poloz. Dodge also touched upon digital currencies like bitcoin during his discussion with Kitco News on Thursday.

Dodge doesn’t believe bitcoinBTC) deserves a spot in the BofC’s reserves, but the former central bank governor did not dismiss crypto assets. “The issue of digital currencies is a very important issue,” Dodge said. “[What] we would like to do globally and [in Canada]is to reduce transaction costs… [The] Bank and the Department of Finance are working hard… on this issue of digitalizing our financial system to reduce transaction costs… The financial system is interested in digitizing the Canadian dollar.”

Tags in this story

antique instrument, Bank of Canada, bitcoin, Bitcoin (BTC), BofC, BofC’s reserves, Browns bottom, Canadian dollar, CBDC, central bank gold, David Dodge, Digital Currencies, Economist, gold, gold central banks, gold dated, Gordon Brown, dated gold, Poloz’s Bottom, Reducing Transaction Costs, seventh governor, Stephen Poloz, UK gold

What do you think about David Dodge speaking about gold and digital currencies? Do you agree with his opinions? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols today emerging.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





Source link

Leave a Comment