Canadian ex-prime minister Harper: Bitcoin could displace the US dollar

The former Prime Minister of Canada worries about the stability of the US dollar and brings Bitcoin into play as a possible alternative.

The attitude of high-ranking politicians towards Bitcoin and Co. is reserved in most cases

Few publicly take pro-crypto positions. Cryptocurrencies are still being written off as a threat to financial stability. Stephen Harper, who served as Prime Minister of Canada between 2006 and 2015, is different. Harper is now bringing Crypto Bank into play as a possible competitor for the US dollar.

When asked which currency types could overtake the US dollar as a reserve currency, Harper replied during an interview with Cambridge House that both Bitcoin and central bank digital currencies are conceivable options. The euro and the Chinese yuan are the only state currencies that can endanger the supremacy of the US dollar. However, fluctuations in value on the one hand and regulatory arbitrariness on the other meant that both candidates were eliminated in the race for the global reserve currency.

Rather, a basket of gold, bitcoin and other assets could prevail as an alternative. Basically, Harper said:

It’s hard to see what the alternative to the US dollar is as the world’s main reserve currency. Apart from gold, bitcoin and a whole basket of things. I think you will see the number of things people use as reserves will increase, but the U.S. dollar will still make up the majority of it.

In particular, the constant development of digital central bank currencies will gain in importance in the future. For reasons of efficiency, these are superior to traditional fiat currencies. In this respect, however, Harper fears that the central banks will concentrate too much power, which in the future could slip into the role of bankers and thereby exceed their powers as a controlling body.