According to Stephen Harper, former Canadian Prime Minister, Bitcoin could be part of a basket of alternative reserves. In other words, the politician argues that the cryptocurrency can become a reserve currency.
Stephen Harper talks about Bitcoin
Harper was Prime Minister of Canada for nearly a decade (February 2006 to November 2015 to be exact). Now he says Bitcoin and other central banks’ digital currencies could become part of the reserve basket.
In the most recent interview given to Cambridge House at the Vancouver Resource Investment Conference, Harper said the US dollar as a reserve currency could theoretically be replaced someday by other strong currencies such as the euro or the yuan. However, he also expressed some doubts as to whether each of them – the euro or the yuan – would be a viable alternative currency to the dollar, given the long-term uncertainty about the value of the euro and “arbitrary measures “what the Chinese government would take regarding the value of the yuan.
– It is difficult to understand what is the alternative to the US dollar as the main reserve currency in the world. Apart from gold, Bitcoin, the whole basket of things […]. I think you will see the number of things people use as reserves will increase, but US dollars will still make up the majority of it all – He said.
CBDCs are unstoppable
The former Canadian prime minister added that in his opinion the digital currencies of central banks (CBDCs) are to some extent “inevitable” but are likely to be subject to some specific monetary policy around the world. He added that he fears that central banks will become “something like a general banker “and not just something like a financial controller. Their role is to be more important, which may affect the CBDC market.
– Ultimately, if you have a digital currency and the goal of the central bank is to control inflation and create a stable currency and [wygenerowanie takich] prices, then the digital currency is just a certain evolution of the market Harper said. – But when [CBDC] is part of a series of experiments on the role of the central bank… that is what worries me.
Since Harper’s departure, the adoption of cryptocurrencies and blockchain in his country has expanded significantly. As of September 2020, Canada has the first regulated cryptocurrency exchange. The bank is also developing the CBDC project, according to Timothy Lane, vice president of Bank of Canada.