Fun

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

News Feed - 2022-05-28 02:05:28

Economist David Dodge Says Gold Is an "Antique Instrument," Thinks Digitizing the Canadian Dollar Is Interesting


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 Despite saying gold is an outdated financial tool, Dodge said that the leading crypto asset bitcoin (BTC) has no place in the Bank of Canada’s reserves.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 U.S. 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 tonnes of gold, between 1999 and 2002. U.K. 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 bitcoin (BTC) 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 banks gold, David Dodge, Digital Currencies, Economist, gold, gold central banks, gold outdated, Gordon Brown, outdated 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 emerging today. Study Shows the United States Is Home to 41% of the NFT Companies Worldwide NEWS | 2 hours ago Bulgarian Crypto Trader Disappears Under Mysterious Circumstances NEWS | 4 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleHow StableFunds Has Made It Extremely Easy to Trade Altcoins Next articleBulgarian Crypto Trader Disappears Under Mysterious Circumstances 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. Read disclaimerShow comments More Popular NewsIn Case You Missed ItDraft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament


A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether

News Feed

Former Terra CEO Do Kwon Enters Not Guilty Plea In Landmark $40 Billion Crypto Trial
Do Kwon, the South Korean cryptocurrency entrepreneur and co-founder of Terraform Labs, pleaded not guilty on Thursday to a series of criminal fraud charges in a Manhattan federal court. 
2,200 letters of support for ‘Bitcoin Strategic Reserve’ bill sent to US senators
Amaka Nwaokocha13 hours ago2,200 letters of support for ‘Bitcoin Strategic Reserve’ bill sent to US senatorsSenator Cynthia Lummis introduced the bill on July 31, which would direct the US government to start a reser
Perplexity AI’s ad integration plan draws shock, mockery: ‘This company is toast’
Tristan Greene3 hours agoPerplexity AI’s ad integration plan draws shock, mockery: ‘This company is toast’The company reportedly intends to charge a much higher-than-average premium for ad space in its AI-powered s
Solana MACD Curling Up – Is This The Prelude To A Breakout?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Turner Wright9 hours agoRobinhood bought back Sam Bankman-Fried’s stake from US gov’t for $606MThe purchase of the 55 million Robinhood shares had been expected following approval from the company’s board and a U.S
Cardano Spikes as Supporters Anticipate Vasil Hard Fork, Poll Shows ADA Expected to Hit $1 by the End of June
Cardano Spikes as Supporters Anticipate Vasil Hard Fork, Poll Shows ADA Expected to Hit $1 by the End of June During the last seven days, the cryptocurrency cardano has increased i
Roaring Kitty buys another 4M GME stocks, birthing conspiracy theory
Ezra Reguerra11 hours agoRoaring Kitty buys another 4M GME stocks, birthing conspiracy theoryKeith Gill, known as Roaring Kitty, buys 4 million more GameStop (GME) shares, increasing his holdings to over 9 million shares
Derek Andersen2 hours agoIBM offers guidance for successful implementation of digital euroFive members of IBM Consulting created a list of points that the European Commission could consider to optimize its proposed digit
Bitcoin Bullish Outlook Confirmed By Critical Data – STH Overheating?
Este artículo también está disponible en español. Bitcoin has had a volatile week, with its price fluctuating between a local high of $69,500 and a low of $65,000. Follow
Tether hires Chainalysis’ chief economist for USDT usage reports
Ana Paula Pereira7 hours agoTether hires Chainalysis’ chief economist for USDT usage reportsTether has appointed Philip Gradwell as head of economics to improve transparency on USDT usage to regulators.6933 Total views
Indian Central Bank RBI Begins First Digital Rupee Pilot Today
Indian Central Bank RBI Begins First Digital Rupee Pilot Today India’s central bank, the Reserve Bank of India (RBI), is launching its first digital rupee pilot on Nov. 1. wi
Metaverse NFT Domains Are Trending: Minting Goes Live on Quik․com
Metaverse NFT Domains Are Trending: Minting Goes Live on Quik․com sponsored Everyone is now familiar with the term “NFTs,” which provide users with decentralized ass