Bitcoin Could Become a Reserve Currency – Former Canadian Prime Minister

News / 18.01.2021

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

Bitcoin a viable alternative to the US Dollar

Stephen Harper shared his views in an interview during the Vancouver Resource Investment Conference. Harper spoke of Bitcoin in the context of a weakening US dollar (USD), which is the most important reserve currency for large economies.

The former Canadian Prime Minister thinks that a large currency can only dislodge the USD like the euro (EUR) and the Yuan (RMB). He further stated that these two currencies have major problems that could affect their ability to dislodge the dollar. He believes that the euro’s value is not sufficiently guaranteed overtime and mentioned problems with arbitrary measures taken by the Chinese government, which influences the price of the yuan.

Harper views Bitcoin as a possible reserve currency for governments. “It is difficult to see what alternative can exist to the US dollar as the world’s reserve currency, beyond gold, Bitcoin, a basket of various assets.’’ He said. Nevertheless, Harper believes that the USD will remain the most widely used reserve currency even as other assets gain popularity. “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 Increasing in Popularity

A statement from a major political figure like Stephen Harper is a major plus for cryptocurrencies. Bitcoin’s popularity and defined value of circulation has seen the coin considered by many within the traditional finance world.

Some economies are adopting the use of cryptocurrency widely in recent years.  Venezuela is a good example of the country using Bitcoin to pay for certain businesses. Its central bank has also raised the possibility of adding Bitcoin and Ether (ETH) to its reserves.

It should also be noted that the use of cryptocurrencies for international trade is common with countries strangled by sanctions. This includes nations like Syria, Iran, Venezuela, and Cuba who have made serious strides in this regard. For more developed economies, the path towards Bitcoin is slower or, in some cases, nonexistent. Despite this, more political figures are beginning to mention cryptocurrencies, which is a sign of growing acceptance.

Olowoporoku Adeniyi is a blockchain enthusiast and crypto evangelist. Currently he loves all things crypto and covers happenings within the blockchain space.