Bitcoin

Bitcoin Could Become a Reserve Currency, Says Former Canadian Prime Minister

Stephen Harper, the former Prime Minister of Canada, has expressed his favorable opinion for Bitcoin (BTC). He considers that cryptocurrency could integrate the currency reserves of global countries in the future.

Will Bitcoin integrate the monetary reserves of economies of scale?

This is the hypothesis that Stephen Harper evoked in an interview during the Vancouver Resource Investment Conference. The man was prime minister from 2006 to 2015 before giving way to Justin Trudeau. He spoke of Bitcoin in the context of a weakening of the US dollar (USD) , which is the most important reserve currency for large economies.

Stephen Harper believes that the USD can only be dislodged by a large currency, such as the euro (EUR) and the yuan ( RMB) . But he considers that the value of the euro is not sufficiently guaranteed over time. He also talks about problems with arbitrary measures taken by the Chinese government, which influence the price of the yuan.

Hence a possibility: include Bitcoin as a reserve currency:

“It is difficult to see what alternative can exist to the US dollar as a global reserve currency. Beyond gold, Bitcoin, a basket of various assets … ”

Harper believes, however, that the USD will remain the most widely used reserve currency, even as other assets find a place in central bank reserves.

“I think we’re going to see a widening of what people see as reserves, but the US dollar will remain the main asset . “

Bitcoin finds legitimacy

Still, a statesman of magnitude who mentions Bitcoin as a plausible reserve is a sign of the substantial path that cryptocurrency has traveled in just a few years. Some economies are adopting cryptocurrency more widely , including Venezuela. The country is now using Bitcoin to pay for certain businesses , and the country’s central bank had previously raised the possibility of adding Bitcoin and Ether (ETH) to its reserves .

For economies that are not strangled by sanctions, taking Bitcoin into account is of course slower, if not nonexistent. But we note that more and more major political figures mention cryptocurrency, a sign of a new legitimacy.