Stephen Harper, who served for nine years as Canada’s prime minister. Says that as part of a basket of reserve currencies to replace the dollar. There may be a place for Bitcoin and central bank digital currencies.
In an interview with Jay Martin of Cambridge House’s investment service at today’s Vancouver Resource Investment Conference. Harper said the possibility of replacing the U.S. dollar could only come from a large currency such as the Euro or the Chinese yuan. He expressed doubts that either of them, given the long-term uncertainty about the value of the euro. And the ‘arbitrary measures’ the Chinese government would take with regard to the value of the yuan, would be a viable alternative currency:
“It’s hard to see what the alternative is to the U.S. dollar as the world’s major reserve currency. Other than gold, Bitcoin, a whole basket of things […] I think you’ll see the number of things that people use as reserves will expand, but the U.S. dollar will still be the bulk of it.”
The former prime minister added
He thought the digital currencies of central banks, or CBDCs, were “inevitable” to some degree, but would probably be subject to monetary policy around the world. Harper said he was worried that central banks would become “kind of a general banker” rather than just a financial monitor, something that could affect any CBDC’s rollout:
“Ultimately, if you have a digital currency and the purpose of the central bank is to control inflation. And create a stable currency and priceability. Then digital currency is just kind of an evolution of the marketplace,” said Harper. “But if it’s part of a series of what I think are wild experiments. As to the role of central banking, then it worries me a lot.”
From 2006 until 2015, Harper served as Canada’s prime minister. Since his departure, crypto and blockchain adoption in the nation has expanded significantly. With Canada receiving its first regulated crypto exchange in September. According to Timothy Lane, the Bank of Canada’s deputy governor. The bank is also moving forward with the development of a CBDC.