Economists and financial experts across the world have started paying more attention to Bitcoin. As the cryptocurrency space matures, many emphases are being laid on its potential as a future reserve currency and asset class.
Former Canadian Prime Minister and economic expert Stephen Harper has voiced that Bitcoin may be a potential reserve currency in how it won’t replace USD.
Stephen Harper Thinks Bitcoin Can be One of the Currency Reserves
Stephen Harper appeared in an interview with Jay Martin of the Cambridge House. He talked about the recent decline of the U.S. Dollar and discussed the international alternatives for a reserve currency. He acknowledged that even though the U.S. dollar is down-trending, there are very few options to replace it.
He added that “Unless the U.S. becomes a catastrophe, it’s hard to see what the alternative is to the U.S. dollar as the world’s major reserve currency. Other than you know gold, bitcoin [and] a whole basket of things, right?”
Harper added that there would be an increase in the number of things people could use as a reserve currency; however, the U.S. Dollar would still dominate the pack. He explained that he cannot comprehend how digital currencies work as a store for value.
Even though he admits to not being an expert in digital currencies, he commented that it is difficult to understand the role of Bitcoin as a store of value. However, it can be used robustly as a medium of exchange and unit of account. Harper also commented on the central banks rolling our digital currencies. He added that if central banks’ ultimate goal is to control inflation and create stable currency, then digital currencies are a step forward. Although he said “But if it is part of a series of what I think are wild experiments as to the role of central banking, then that worries me a lot.”
As the cryptocurrency industry evolves, many prominent personalities have voiced about the potential role of Bitcoin and other crypto tokens and decentralized finance in the mainstream economy. Recently Brian Brooks of the Office of Comptroller of Currencies noted that Decentralized Finance could pave the way for self-driving banks.
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