Harvard Professor of Economics and former Chief Economist at the International Monetary Fund (IMF) Kenneth Rogoff believes that governments will not allow bitcoin to flourish on a large scale. “The regulation will come in. The government will win,” he said. The professor also discussed the likelihood of a bitcoin bubble.
Harvard Professor Warns of Strict Crypto Regulation
Harvard University Professor Kenneth Rogoff shared some thoughts about bitcoin regulation during an interview on Bloomberg Surveillance last week. Rogoff is the Thomas D. Cabot Professor of Public Policy and a professor of economics at Harvard University. He also served as Chief Economist at the International Monetary Fund (IMF) from 2001–2003.
“It’s speculative,” he began. “I’ve been a bitcoin skeptic and certainly the price has gone up.” However, Rogoff argued, “there’s sort of an ultimate question of what’s the use. Is it just valuable because people think it’s valuable? That is a bubble that would blow up.”
He continued: “I can see bitcoin being used in failed states. It’s conceivable it could have some use in a dystopian future.” Nonetheless, he emphasized, “I think the governments are not going to allow pseudonymous transactions on a big scale. They’re just not going to allow it.” The Harvard economics professor elaborated:
The regulation will come in. The government will win. It doesn’t matter what the technology is.
“So, I think over the long run if there’s not a use, the bubble will burst. I hope there’s not such a valuable use but I suppose it’s a hedge against dystopia,” he further opined.
Rogoff was then asked, “would you advise Secretary Yellen at Treasury that the U.S. should be proactive in instituting that regulation which could collapse the price of cryptocurrency?”
He simply replied: “Yes, that’s just true across the board. It needs to be regulated … I think governments are on it….