Central Banks and Governments Are ‘Way Behind the Curve’ in Cryptocurrency Regulation – Bitcoin News Regulation

Central Banks and Governments Are ‘Way Behind the Curve’ in Cryptocurrency Regulation – Bitcoin News Regulation

Harvard economics professor 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 added that officials are dismissing the idea of ​​central bank digital currencies (CBDCs) “to disrupt the conversation.”

Harvard Professor of Cryptocurrency Regulation

American economist Kenneth Rogoff discussed cryptocurrency regulation and central bank digital currencies (CBDCs) in an interview with Bloomberg on Monday. Rogoff is the Thomas D. Cabot Professor of Public Policy and Professor of Economics at Harvard University. He was also the Chief Economist at the International Monetary Fund (IMF) from 2001 to 2003.

A Harvard professor described:

I think central banks are way behind the curve, and governments in general, in regulating cryptocurrencies. They reject the idea of ​​having CBDCs to disrupt the conversation.

Commenting on the issuance of a digital dollar in the US, he said: “At this point, if you are thinking about the United States issuing a CBDC, you have to ask yourself why they are doing it. Because we can achieve many things the same way in the current system by making adjustments.”

The economics professor explained that if the Federal Reserve “did too well,” and there was a “central bank digital currency for retailers,” then “there would be massive disintermediation that we’re probably not ready to deal with,” he warned.

Professor Rogoff continued: “I think there are small central banks that want to issue CBDC hoping to get some kind of business as cryptocurrencies.”

When asked why central banks and governments are putting off regulating cryptocurrencies, Rogoff replied: “I think it feels like the 1990s and early 2000s 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 mostly hear the same things from young cryptocurrency pioneers and there are a lot of ideas. But they are wrong that they cannot be regulated.

Rogoff has long been a bitcoin skeptic. He earlier warned which governments and central banks will never allow BTC to go mainstream. In 2018, he he said a cryptocurrency is more likely to be worth $100 than $100k a decade from now. “Essentially, if you take away the possibility of money laundering and tax evasion, its actual use as a means of transaction is very small,” according to the former chief economist of the IMF.

What do you think of Harvard Professor Rogoff’s comments? Let us know in the comments section below.

Central Banks and Governments Are ‘Way Behind the Curve’ in Cryptocurrency Regulation – Bitcoin News Regulation

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects, and the intersection between economics and cryptography.

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