According to former Canadian Prime Minister Stephen Harper, Bitcoin may become a reserve currency in the future, even if the US dollar continues to maintain its role of global dominance.
Stephen Harper, a well-known Canadian politician and former Prime Minister of this country, seriously considers that Bitcoin (BTC), , the cryptocurrency, may become a global reserve currency, thanks to its potential as a medium of exchange, as a unit of account, and also as a store of value. Harper was keen to stress that he is not a connoisseur or expert on the subject of digital currencies, but said that the US dollar, while it may continue to maintain its status as a global store of value, is currently losing popularity and dominance. The former Canadian minister also highlighted that there are many other alternatives on the market that can gain ground on the dollar in this area, including Bitcoin.
Harper also highlighted that in the case of other fiat currencies, such as the euro or the yuan, there are many doubts about whether they can become reserve currencies due to the uncertainty surrounding their long-term value, which is why Bitcoin is among their best alternatives.
According to his assessment of Bitcoin, Harper explained that this cryptocurrency can successfully fulfill the 3 main purposes that every currency should have, which are: to be a means of payment and exchange of value, be a unit of account and be a store and reserve of valueIn fact, it is worth remembering that bitcoin, more than the first two, is considered by most as a store of value. In 2020, we saw the arrival of many companies and investment management companies and funds transforming part of their cash reserves into Bitcoin, considering precisely that bitcoin is a better store of value than the dollar, the euro, and even gold.
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The transformation and evolution of markets
Given the course that today's society is taking towards innovation and digital transformation, former Prime Minister Harper highlighted that Bitcoin's potential can increase as central banks and governments around the world adopt digital currencies. CBDC as a new form of money.
The launch of their own digital currencies is becoming a trend among central banks around the world, who see in these currencies a new way to control inflation levels, and to create a currency with price stability. Harper stressed that if this is the purpose that the new CBDC digital currencies of banks are going to fulfill, then it can be said that it is a “a kind of market evolution”. While if CBDCs are just “crazy experiments” on the role of central banking in the economy, then the future situation may turn out to be a bit worrying.
During the interview with Jay Martin de Cambridge House, the former Canadian prime minister reiterated on several occasions that his knowledge of new digital systems was not that of an expert, and that his opinions were based on the fact that there are a large number of things “that people use as reserves” and that they will continue to expand; so bitcoin could potentially be used as a reserve currency in the future.
The Bitcoin Belief System
We live in a dynamic world, full of constant change and evolution, where all the systems we know will be transformed to make way for a next generation of innovative services and products. However, the revolution driven by new forms of money, such as cryptocurrencies, is quite accelerated. Bitcoin, which was born as the first successful cryptocurrency in the world, and also, one of the greatest technological innovations of our time, is marking a new pace of transformation and change.
Although its arrival on the markets is relatively new, and, as a technological innovation, it remained “hidden” from society for several years, the current frenzy and interest that exists for this asset is unprecedented.
A few years ago, Bitcoin was known only to a few people, who knew of its existence and its enormous potential. But for the rest of society, this cryptocurrency was practically “non-existent.” Then, when Bitcoin made its public appearance, most of the media dedicated themselves to speculating about its purpose, and ended up giving this innovation a very bad image. However, the true purpose of Bitcoin came to light, and today this cryptocurrency has gained in popularity and demand; something that, among many other things, has made its price and value grow.
On the way to becoming a reserve currency
Nowadays, people are becoming more interested in learning more about Bitcoin, increasing the demand for this cryptocurrency in the markets. Even, as we already mentioned, in 2020, institutional interest in Bitcoin arose, and large companies in the financial world began to invest several billion dollars in this cryptocurrency.
The history of Bitcoin's evolution over these 12 years, as a means of payment and as a store of value, makes Harper's vision of Bitcoin becoming a global reserve currency not far-fetched. In fact, it is worth remembering that one of the purposes for which Bitcoin was created is precisely to become a global mechanism for the exchange of value without intermediaries, and why not?, into a reserve currency.
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