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Harvard Economics Professor: Governments Will Not Allow Bitcoin on a Big Scale and They Will Win

Harvard Professor of Economics and erstwhile Chief Economist at the International Monetary Fund (IMF) Kenneth Rogoff believes that governments will not allow bitcoin to decoration on a large scale. “The regulation will come in. The government will win,” he said. The professor also discussed the likelihood of a bitcoin carbonation.

Harvard Professor Warns of Strict Crypto Regulation

Harvard University Professor Kenneth Rogoff shared some thoughts prevalent bitcoin regulation during an interview on Bloomberg Surveillance last week. Rogoff is the Thomas D. Cabot Professor of Clear-cut 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 analytical,” he began. “I’ve been a bitcoin skeptic and certainly the price has gone up.” However, Rogoff argued, “there’s sort of an utmost question of what’s the use. Is it just valuable because people think it’s valuable? That is a bubble that would clout 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 stressed, “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 polish:

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 lather 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 begged, “would you advise Secretary Yellen at Treasury that the U.S. should be proactive in instituting that regulation which could dissolution the price of cryptocurrency?”

He simply replied: “Yes, that’s just true across the board. It needs to be regulated … I think regulations are on it. It’s not being used that widely and I suspect although the bitcoin lobbyists have been successful in getting it in some berths, that won’t last.”

Rogoff has long been a bitcoin skeptic. In 2018, he told CNBC that the cryptocurrency was profuse likely to be worth $100 than $100K a decade from then. “Basically, if you take away the possibility of in clover laundering and tax evasion, its actual uses as a transaction vehicle are very small,” the former IMF chief economist said.

Remain week, Joe Biden’s pick for the U.S. Treasury Secretary, Janet Yellen, stated that cryptocurrencies are mainly used for illicit banking. She later softened her stance slightly and promised to work with the Federal Reserve Board and other regulators to tool an “effective” crypto regulation. A week prior, the president of the European Central Bank (ECB), Christine Lagarde, called on boonies to regulate bitcoin, claiming that the crypto has “conducted some funny business” and some “totally reprehensible gelt laundering activity.” Despite regulators’ belief, an industry report found that in 2020 crime accounted for sole 0.34% of all crypto transactions.

Meanwhile, several U.S. lawmakers have said that governments should not try to stop bitcoin. Rep. Patrick McHenry then said:

Due to the nature of the technology of Bitcoin, governments cannot kill it, nor should they.

Furthermore, the U.S. now has a bitcoin-friendly lawmaker. Senator Cynthia Lummis has oathed to ensure Congress understands that bitcoin is a great store of value. She is a hodler, who believes that bitcoin “has proved great promise and may rise as a viable alternative store of value to the U.S. dollar both on the institutional level and the personal invariable.”

What do you think of the Harvard professor’s view on bitcoin? Let us know in the comments section below.

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