Economist David Dodge, the former seventh governor of the Bank of Canada, said gold is an “antique tool” and he believes the Bank of Canada abandoned its gold reserves for this very reason. Despite saying that gold is an outdated financial tool, Dodge said the leading crypto asset Bitcoin (bitcoin) has no place in the reserves of the Bank of Canada.
David Dodge: Bank of Canada ‘really doesn’t make any sense to hold this antique stable tool called gold’
David Dodge, the former seventh governor of the Bank of Canada (BofC), sees gold as an outdated payment tool and expensive to store. Dodge spoke with Kitco News reporter David Lin on Thursday and discussed the shiny yellow precious metal.
According to Dodge, gold is an ancient tool and the Central Bank of Canada is right to get rid of it. Canada is the only G7 country that does not hold any gold reserves.Bank of Canada’s Gold sales trends Beginning in the early 2000s, through 2016, Ottawa Sold most of gold reserves.
“[The] The problem is clear, there is a cost to holding gold, and holding U.S. or Chinese or euro bonds will pay you back,” Dodge told Lim on Thursday afternoon. “…It’s a strong point. And to think that our international monetary system is in a place strong enough to hold this ancient stable tool called ‘gold’ really doesn’t make any sense. “
Dodge believes in lowering transaction costs, says digital currency issue “is a very important issue”
Canada followed in the footsteps of the United Kingdom, which sold half of its gold holdings, or 395 tonnes, between 1999 and 2002. British citizens called the event “Brown Valley”, after Gordon Brown from 1997 to 2007. Canada’s move out of gold has been dubbed the “Poloz bottom,” named after Bank of America’s ninth president, Stephen Poloz. Dodge also touched on digital currencies such as Bitcoin during a discussion with Kitco News on Thursday.
Dodge doesn’t believe in Bitcoin (bitcoin) deserves a place in U.S. banks’ reserves, but the former central banker isn’t rejecting cryptoassets. “The digital currency issue is a very important one,” Dodge said. “[What] We want to be globally and [in Canada]in order to reduce transaction costs… [The] Banks and Treasury are working on…solving the issue of digitizing the financial system to reduce transaction costs…the financial system is interested in digitizing the Canadian dollar. “
What do you think of David Dodge talking about gold and digital currencies? Do you agree with him? Let us know what you think about this topic in the comments section below.
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