The seventh and former governor of the Bank of Canada David Dodge believes that gold is an obsolete payment instrument and expensive to keep.
According to him, gold is an archaic instrument, and the central bank of Canada did the right thing by getting rid of it. At the moment Canada is the only G7 country that doesn’t have gold reserves.
The Canadian central bank’s desire to sell gold began in the early 2000s, and by 2016 Ottawa had sold most of its gold reserves.
The question is very clear: Holding gold is worth it, while owning U.S., Chinese or euro bonds earns you money,” Dodge said.
“Our international monetary system is in a safe enough place that owning this ancient instrument of stability called gold really doesn’t make any sense.
Dodge doesn’t think bitcoin (BTC) deserves a place in the reserves of the Bank of Canada, but the former central bank governor is not opposed to crypto-assets.
The issue of digital currencies is a very important one. What the rest of the world would like to do is lower transaction costs…
The Bank and the Ministry of Finance are working hard on the issue of digitizing our financial system to reduce transaction costs…the financial system is interested in digitizing the Canadian dollar.