Although it has been 88 years since the system changed as much as 29 percent of the United States (US) is still unaware, what is US dollar backed by? a study reveals.
A new study conducted via the world’s most popular hash supplier, Genesis Mining has published fascinating discoveries on the perception of the everyday American on money and banking.
The report is dubbed, “Perceptions of Money and Banking in the US 2019” with a 1000 respondents who answered about 23 questions ranging from banking to fiat money and even the Federal Reserve.
Results indicated the following beliefs prevailing amongst American citizens:
- 29 percent believe the US dollar backed by Gold
- 4 percent: believe the US dollar backed by Oil
- 5 percent: believe the US dollar backed by Bonds
- 7 percent: believe the US dollar backed by Nothing
- 23 percent: believe the US dollar backed by No Knowledge
- 30 percent: accurately stated that the US dollar is backed by the US government
What is US dollar backed by?
It is a known fact that in the year 1909, the nation shifted to a standard of gold, fixing gold and silver as the legal-tenders of the country. This was only suspended in the year 1933 by President Roosevelt owed to inflation.
However, the dollar was interchangeably 25.8 grains of gold, which is slightly beyond 18.60 USD per ounce. Where the gold standard was somewhat in place until 1973, the silver dollars were last issued in the year 1970 and haven’t been seen since.
When respondents were asked about who they felt decided more notes be printed, 18 percent were left clueless, while 58 percent indicated it was the Federal Reserve, and another popular answer was the government. Owed to financial illiteracy, the failure of traditional finance catching with expectations of the people has done no damage to their faith in them.
Another fascinating result indicates that 76 percent of these respondents did not agree with the United States government’s plan to replace traditional currency with cryptocurrency.
However, this showed that the nation is not prepared for the clarity that comes with crypto. Not surprisingly, it is not the everyday American that holds these sentiments, but the banks do as well.
The Chief Economist of ING Mark Cliffe claimed that it was only a matter of five years before the digital era takes over financial transactions through crypto.
Several countries, including China, have taken steps to create their centralized virtual currencies, but this allows for the loss of anonymity with Central Bank run crypto; authorities can easily trace them.
24% believe Fed still secures US Gold Reserves backing US dollar
Whereas, 24 percent of respondents were of the view that it was the Federal Government that was superintended for securing the gold reserves. While 50 percent believed that they were superintended to oversee monetary policies. Another 54 percent believed that the banks are owned by the government.
Apart from this, 26 percent of the respondents were of the view that the banks are required to hold a hundred percent of the money deposited by consumers in the bank. Another 52 percent believed that banks should not. Similarly, nine percent believed that only one to ten percent should be held.
This being considered, one’s life does revolve around monetary compensation, and it is rather astonishing that individuals still require a lot of clarity with how the money flows. Once this is accomplished, the idea of the adoption of the digital realm does not seem foreign and could potentially garner more support.
Yet still, the negative views surrounding crypto have started to surface owing to the abundance of illegal activities, including laundering and terrorism. Reports from August have revealed North Korea being able to use crypto-hacks to gather two billion to purchase weapons of mass destruction.