According to the former prime minister Stephen Harper, Bitcoin can play well as a reserve alternative to the falling US dollar. According to him, cryptocurrency has the potential to replace the dollar as the stellar currency.
From the interview that he had at the Vancouver Resource Investment Conference with Cambridge House’s Jay Martin’s investment service, he cited that the US dollar stands at a high risk of being replaced. It is highly unlikely that the Euro or Chinese Yuan will replace it as they are not viable in the long-term. There is uncertainty on Euro’s value, and the Yuan is solely dependent on the Chinese government.
No fiat currency is likely to replace the US dollar as the world’s primary reserve currency leaving an open option to Bitcoin and other cryptocurrencies.
Harper strongly believes that at some point, central bank digital currencies, or CBDCs, would be inevitable but still be subject to monetary policy in the world. He expressed his concerns that the central bank will affect the rollout of CBDC as central banks are just interested in general banking as opposed to monitoring.
According to Harper, cryptocurrency will only be an evolution in the marketplace if the central banks stick to controlling inflation and maintaining a stable currency and price. When the central bank deviates from its role, it becomes a problem.
Harper maintained as Canada’s prime minister for nine years up to 2015. Canada is at the forefront of adopting crypto and blockchain. It is currently working on launching its first regulated crypto exchange in September.
A rising number of people are switching to Bitcoin as a reserve currency. Lately, there is a rush by institutional investors to invest in the currency. Bitcoin has been likened to gold by financial experts. The pandemic was an incredible eye-opener as it made people seek alternative investments, and Bitcoin was top of the list.
That explains why its price has been on the rise; demand is rising too. As much as it may be a bubble that will burst one day, it is highly unlikely to happen in the near future. Many governments are currently considering having CBDCs, and the trend is expected to grow in the future.