Stephen Harper, ex-premier of Canada says both bitcoin and Gold are great assets that can be used as sources for reserving currencies. But denies the perception of Bitcoin taking over the US Dollar. Says that though Gold and Bitcoin have joined the pool of reserves yet US Dollar will continue to dominate.
Harper was discussing the 2008 financial global crisis in contrast with US Dollar as to why there are no potential threats to US Dollar. He said that at present moment and in the future as well US Dollar will continue to hold the status of great currency for reserve.
He pointed out that the 2008 crisis severely impacted the US’s economy but Canada came out from the crisis unscathed. At that time the demand for the Canadian Dollar peaked exponentially along with other countries which too came out from the crisis safely. Yet neither the Canadian Dollar nor other currencies were able to absorb the cash coming towards them. Resultantly, they failed to make good of the cash coming in which then moved into US Dollar. Harper said at that time he came to believe that it is impossible to displace US Dollar from its dominant position.
He further pointed out that the only two fiat currencies which in his opinion can turn the table, are Yuan and Euro. Other than these two no one can dare to challenge the American dollar in the near or even far future, he stated. He stated further that both currencies for the time being had been carrying on shortcomings that are inherited. Regarding Euro, Harper suggested that as compared to US Dollar, Euro is relatively new and therefore cannot overtake US Dollar in the long run.
With regard to Yuan, Harper said that no one can actually determine the actual worth of Yuan but it could potentially be a contender. However, the ex-Canadian premier agreed at one thing which was that Bitcoin is a great store for value. He specifically said that Gold as well as Bitcoin are great assets that can be used as sources for currency reserves. But he categorically denied the idea of Bitcoin taking over the US Dollar in the near future.