19 Jan

Former Canadian PM: Bitcoin possible reserve currency

Former Canadian PM: Bitcoin possible reserve currency

Bitcoin could be included in reserve currencies as an alternative to the US dollar, according to Stephen Harper.
Stephen Harper was prime minister of Canada for nine years and recently said that bitcoin and digital central bank currencies together could be reserve currencies that replace the dollar.

In an interview with Jay Martin of investment services firm Cambridge House at the Vancouver Resource Investment Conference, Harper said that only a major currency like Crypto Profit the euro or the Chinese yuan could replace the US dollar. He said that given the long-term uncertainty about the value of the euro and the Chinese government’s „arbitrary actions“ on the value of the yuan, neither currency would be a viable alternative currency.

„It is hard to find an alternative to the US dollar as the world’s main reserve currency. Apart from gold, Bitcoin, a whole basket of miscellaneous I think, you will see that there will be more and more things that people will use as reserves. But the US dollar will still make up the bulk of it.“

Harper said he was concerned

The former prime minister added that he thought digital central bank currencies (CBDCs) were „inevitable“ to some extent. But they would likely be subject to international monetary policy. Harper said he was concerned about central banks becoming „sort of general bankers“ rather than just a financial watchdog. That could affect the introduction of a CBDC:

„If you have a digital currency and the purpose of the central bank is to control inflation and create a stable currency and price stability, then ultimately a digital currency is just a kind of evolution of the market,“ Harper said. „But if that’s happening in the context of what I think are wild experiments on the role of central banking, then it worries me a lot.“

Harper was prime minister of Canada from 2006 to 2015. Crypto and blockchain adoption in the country has expanded significantly since his departure. In September, Canada got its first regulated crypto exchange. According to Timothy Lane, deputy governor of the Bank of Canada, the bank is also making progress in developing a CBDC.