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

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” when it comes to regulating cryptocurrencies. He added that officials are throwing out the idea of ​​having central bank digital currencies (CBDCs) “to distract 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 also served as chief economist at the International Monetary Fund (IMF) from 2001–2003.

The Harvard professor described:

I think central banks are way behind the curve, and governments in general, when it comes to regulating cryptocurrencies. They throw out the idea of ​​having CBDCs to distract the conversation.

Commenting on the US issuing a digital dollar, he opined: “At the moment, if you think about the US issuing a CBDC, you have to ask why they are doing it. Because we can achieve many things in the same way in the current system by making adjustments.”

The economics professor explained that if the Federal Reserve “did it too well” and there is a “digital currency for retail central banks,” 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 a CBDC in the hope that they will get some of the kind of business that crypto gets.”

When asked why central banks and governments are delaying the regulation of cryptocurrencies, Rogoff replied: “I think it feels like the 1990s and early 2000s to me when the financial system invented all these smart new fintech devices and said … ‘catch me if you can,’ ‘regulate me if you can'”

He concluded:

I hear a lot of the same from the young cryptocurrency pioneers and there are many ideas. But they are wrong that they cannot be regulated.

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

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

Kevin Helms

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