Genesis Mining, a cryptocurrency miner, found that one-third of Americans believe the US Dollar is still backed by gold. The dollar has not been backed by gold since 1973.
The survey, conducted in late September, included 1,000 participants. Its goal: to determine just how much U.S. citizens understood money. In late October, the miner found that 29% of those surveyed believed a gold reserve backed the U.S. dollar. 24% of respondents answered that the Federal Reserve was tasked to secure the nation’s gold reserve.
50% of respondents answered correctly that it was the Federal Reserve’s job to oversee the nation’s monetary policy and interest rates, as reported by Kitco News. 54% believed the U.S. government completely owns the Federal Reserve banks.
“If we look at this data as a reflection of a larger population, many Americans don’t actually understand what the Fed is and what role it plays in our fiat system,” the report said. “When you consider that our lives center around money, it ’s always concerning to realize that many people out there do not understand the basics behind who controls it, what gives it value, and how the banks that we trust so much truly operate.”
The survey demonstrated that 76% of respondents don’t think the U.S. government should eliminate paper money for digital money.
Although U.S. citizens believe the U.S. dollar enjoys a gold reserve as its base, the Federal Reserve has no plans to re-institute a gold peg.
Federal Reserve Chair Jerome Powell doesn’t believe a new gold standard is a good idea.
“We would then not be looking at maximum employment or stable prices,” he said. “There have been plenty of times in the fairly recent history where the price of gold has sent signals that would be quite negative for these of those goals.”