![\"Harvard](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2021\/02\/rugoff-768x432.jpg\")
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Harvard Professor of Economics and former chief economist at the International Monetary Fund (IMF) Kenneth Rogoff says that central banks won\u2019t allow bitcoin and other cryptocurrencies to become mainstream. \u201cEventually over the long course of history, the government first regulates and then it appropriates, and I think we can see that happening here,\u201d he warned.<\/strong><\/p>\n American economist Kenneth Rogoff shared his views on the future of bitcoin, its regulation, and the recent bull run in an interview with CNBC TV18 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\u20132003.<\/p>\n \u201cZero interest rates can produce a lot of funny asset valuations. So that is certainly part of it,\u201d he responded to a question about the rise in popularity of bitcoin and its recent bull run. \u201cClearly, there are a lot of wealthy people and well-known financiers, often very senior, who publically said they are investing in it [bitcoin] and that has given confidence.\u201d<\/p>\n Nonetheless, the professor of economics cautioned: \u201cBut I have to say, regulation is in its early innings \u2013 if there is no final use case for bitcoins, [and] I don\u2019t think it\u2019s going to be, [then] ultimately this bubble will pop, but it could take a decade.\u201d<\/p>\n Given the recent BTC<\/a> price surge and the subsequent spike in its market capitalization, Rogoff was asked why central banks and governments have not passed strict regulations to control its trading or even banned it. \u201cI think they are all over it,\u201d the professor replied, pointing out that the Bank for International Settlements (BIS), the G7, and the G20 are all closely watching the cryptocurrency. \u201cEvery central bank is looking at this and trying to decide what to do,\u201d he emphasized.<\/p>\n \u201cThe real issue is that for the moment it is not really used for a lot of meaningful transactions, except in war-torn states, where I think people use it to get money in and out. That\u2019s certainly a good use,\u201d Rogoff opined.<\/p>\n The economist proceeded to predict: \u201cAs it really starts to compete with ordinary, fiat currencies, government currencies, I think they\u2019ll clamp down on it like a ton of bricks. They are not going to allow that to happen.\u201d Comparing bitcoin to modern art, the economist elaborated:<\/p>\n Right now it is an asset class and I suppose in the way modern art is, but it doesn\u2019t necessarily mean that it is in the mainstream. I think that is extremely misleading. Central bankers will never ever allow that.<\/p>\n<\/blockquote>\n <\/ins> <\/ins> <\/p>\n A growing number of companies are investing in bitcoin, such as Elon Musk\u2019s Tesla<\/a>, which recently put $1.5 billion in the cryptocurrency, and Jack Dorsey\u2019s Square, which invested $170 million more<\/a> in BTC<\/a>. Tesla will also be accepting bitcoin as a means of payment in the near future. Citing bitcoin\u2019s rising adoption and a growing acceptance as a legitimate means of payment, such as what is happening in the U.S. city of Miami<\/a>, Rogoff was asked if regulating bitcoin would become more difficult for governments.<\/p>\n \u201cI don\u2019t think regulating it is all that difficult,\u201d he replied. \u201cI think that there has been a hesitation to move too quickly because there has been a lot of innovation in the cryptocurrency space and governments want to allow that to proceed.\u201d<\/p>\n In conclusion, professor Rogoff warned:<\/p>\n But make no mistake, the governments need to retain control over taxation, controlling crime, etc. They need to maintain control over the unit of account \u2014 the currency. Yes, private innovation can come out for a while, but eventually over the long course of history, the government first regulates and then it appropriates, and I think we can see that happening here.<\/p>\n<\/blockquote>\nHarvard Professor\u2019s Warning About Bitcoin<\/h2>\n
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