Copy link
Increase text size
Decrease text size
Link copied

Bitcoin (BTC) and other cryptos won’t be allowed to go mainstream, warns former IMF economist

The economist explained that governments and central banks are not too serious in regulating BTC at this point since its usage is limited.

Kenneth Rogoff / Image by: World Bank Photo Collection / Flickr

Mon, 01 Mar 2021, 14:00 pm UTC

With the market rally pushing Bitcoin (BTC), Ether (ETH), and other cryptocurrencies to new heights, digital assets are becoming more attractive to investors. In fact, a new report revealed that BTC’s rally is the main driver of January’s 15.7 percent rise in the number of crypto users worldwide.

While cryptocurrency adoption is indeed increasing, it’s unlikely for Bitcoin or other cryptos to become mainstream. It won’t reach that point because central banks will bar it from happening, according to the former chief economist of the International Monetary and Harvard Professor of Economics Kenneth Rogoff.

“Eventually over the long course of history, the government first regulates and then it appropriates, and I think we can see that happening here,” Rogoff warned, according to Bitcoin.com. The economist shared in views on Bitcoin’s future, its bull run, and regulatory developments in an interview with CNBC TV18 last week.

Rogoff expressed his doubts about Bitcoin’s valuation. The crypto set a new high above $58,000 last month before a series of price corrections forced its price to retreat. At the time of writing, BTC traded at $48,227 based on Coinmarketcap data.

“Zero interest rates can produce a lot of funny asset valuations, so that is certainly part of it,” he answered a question about BTC’s bull run. “Clearly, 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.”

The economist explained that governments and central banks are not too serious in regulating BTC at this point since its usage is limited. “The 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,” Rogoff said. “That’s certainly a good use.”

But things could change once it starts to seriously compete with fiat currencies. “As it really starts to compete with ordinary, fiat currencies, government currencies, I think they’ll clamp down on it like a ton of bricks,” he explained. "They are not going to allow that to happen.”

The economist believes that governments are a bit hesitant to impose stricter regulations on Bitcoin at the moment. The reason for this reluctance is that governments want the various innovations being developed in the crypto space to continue.

“But make no mistake, the governments need to retain control over taxation, controlling crime, etc,” Rogoff concluded. “They need to maintain control over the unit of account — 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.”

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (btc) $64,438.00 (+5.72%)
  • Ethereum (eth) $2,384.56 (+10.12%)
  • Binance Coin (bnb) $582.11 (+5.83%)
  • XRP (xrp) $1.91 (+18.92%)
  • Cardano (ada) $1.51 (+17.38%)
  • Bitcoin (btc) $64,438.00 (+5.72%)
Apr 14, 2021 (Wednesday)
06:45
Famous Photographer Kim Joong-man To Launch His First NFT Series On TrihumphX
06:11
BTC Surges by 1.01% Within 5 Mins, Marking 64,641.53 USDT
04:43
Kenyan Athlete And Olympic Champion Eliud Kipchoge Gets $40K In ETH After Auctioning NFTs Of 'Key Moments'
03:05
CoinNess Market Surveillance Apr. 14: BTC Trading Above $63000 Level
02:45
Kraken CEO Confirms Public Offering To Come If Over-Regulation Doesn’t Force The Platform ‘Out Of The Country’
02:30
Crypto Market Sentiment On Apr 14: Market In "Greed"
02:01
ETH Tops List Of Crypto Net Inflow With $275.63 Mln In Past 10 Hours
01:41
Data Summary Of Boboo.com's Perpetual Contract: April 14
Apr 13, 2021 (Tuesday)
10:51
The volume of staked assets on Lido has exceeded $1 billion.
10:15
20% Of Currency.com Users Confident Of Above $100K Bitcoin (BTC)
10:00
BTC Tops List Of Crypto Net Inflow With $1.07 Bln In Past 18 Hours
09:53
Linux Foundation, Insurance Group Roll Out Platform To Cut Costs Using DLT
09:53
BTC Soars To 63000 USDT Threshold
09:33
Court Denies SEC’s Request Seeking Years Of Financial Records From Ripple Execs
08:45
Market Cap Of Ethereum Outruns Toyota
08:29
US Firm Splashes Out On 4800 Bitcoin Miners Worth $34M
08:20
A House In Germany Is Being Sold As An NFT
08:15
BTC Surges by 1.13% Within 5 Mins, Marking 61,825.47 USDT
07:57
Dream PC Accepts Crypto Payment
07:19
Total market cap of USDT exceeded $45 billion, now marking $45.5 billion.
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft