Former Canadian Prime Minister: Bitcoin could replace the U.S. dollar as a long-term asset.
🚀 Stephen Harper, Canada's former prime minister, has suggested that Bitcoin and gold could stand as alternatives to the U.S. dollar.
Former Canadian Prime Minister Stephen Harper believes Bitcoin and central bank digital currencies (CBDC) are possible options to replace denominated currencies in the future.
Speaking to Jay Martin of Cambridge House, Harper said that the euro or Chinese yuan are among the few currencies that could replace the dominance of the U.S. dollar. However, he also suggested that they would work sustainably as a long-term option because of the volatility of the value and regulation of both currencies. Instead of fiat currencies replacing the dollar, the former prime minister noted that gold, bitcoin and other assets could work as options. In his words:
"It's hard to see what the alternative to the U.S. dollar as the world's primary reserve currency is." Besides gold, Bitcoin, there is a whole basket of options. I think you'll see the number of things that people use as reserves will increase, but the U.S. dollar will still be a bigger part of it."
💰 Central bank digital currencies (CBDCs) are "inevitable."
According to Harper, the concept of a central bank currency issued on a blockchain or based on similar technology behind cryptocurrency will inevitably become widespread around the world. However, one of the key problems the former prime minister faces with a bitcoin-style monetary system is that central banks may become a general banker rather than an institution that monitors and regulates the economy. As he noted:🛸 "Ultimately, if you have a digital currency, and the goal of the central bank is to control inflation and create a stable currency and price stability, then a digital currency is just a kind of market evolution. But if this is part of a series of what I think are wild experiments on the role of the central bank, then it really bothers me."