Harvard Professor of Economics and former chief economist at the International Monetary Fund (IMF) Kenneth Rogoff says central banks and governments are "way behind the curve" in regulating cryptocurrencies. He stated that officials are tempted to suggest central bank digital currency (CBDCs), "to distract the discussion."
Harvard's Professor on Cryptocurrency Regulation
In an interview with Bloomberg Monday Kenneth Rogoff, an American economist discussed cryptocurrency regulation (CBDCs), and central bank digital currencies. Rogoff is the Thomas D. Cabot Prof of Public Policy at Harvard University and a professor in economics. From 2001-2003, he served as chief economist for the International Monetary Fund.
The Harvard professor described:
I believe central banks are far behind governments and the curve in regulating crypto currencies. They throw out the idea of having CBDCs to distract the conversation.
He commented on the U.S. issuing digital dollars and said: "At this moment, if we think about the United States issuing CBDCs, we have to ask why." Because there are many things that can be done in the current system. We just need to make some adjustments.
The economic professor explained that if the Federal Reserve "did it too well," and there is a "retail central bank digital currency," then "There'd be massive disintermediation that we're probably not ready to handle," he warned.
Professor Rogoff said, "I think there's small central banks who want to issue a CBDC hoping that they'll get some kind of business like crypto gets."
When asked why central banks and governments are delaying regulating cryptocurrencies, Rogoff replied: "I think it feels like the 1990s and early 2000s to me when the financial system was inventing all these clever new financial engineering devices and saying ... 'catch me if you can,' 'regulate me if you can. '"
He concluded:
I hear the same things from young cryptocurrency pioneers, and there are many good ideas. They are wrong. They cannot be regulated.
Rogoff has long been a bitcoin skeptic. Rogoff warned previously that central banks and governments will not allow bitcoin to become mainstream. Explorer He stated that the cryptocurrency was more likely than ever to be worth $100K in 2018 than $100K in a decade. "Basically, if money laundering and tax evasion are eliminated, its actual use as a transaction instrument are very limited," the former IMF chief economist stated.
What do you think the comments by Harvard Professor Rogoff are? Let us know in the comments section below.