Eichengreen stated that he does not believe cryptocurrencies such as bitcoin or ether will play a large role in the economy in the near future. Eichengreen stated that “I think there is a role for central bank-issued digital currencies which are a very different thing that crypto, anonymous currencies. The first alternative central bank digital currencies will make transactions more efficient. The second is a vehicle for money laundering, tax evasion and the like.”
There has been a lot of criticism of cryptocurrencies in the past several months as investors and economists across the world have been attempting to find a level of comfort in the market.
One economist from Harvard named Kenneth Rogoff, recently stated that the price of bitcoin and the likes may collapse under the pressure from governments across the world. With China attempting to ban cryptocurrencies and initial coin offerings in the country, other places have not been so harsh. Countries like Japan have been attempting to legitimize the currency and provide a safe haven for investors to come into the industry.
One of the largest critics of the cryptocurrency market has notably been Jamie Dimon, the CEO of JPMorgan. He recently called bitcoin a “fraud” and further stated that the coin would “blow up.” This prediction has not yet come true, and the opposite has happened in recent news. The price of bitcoin and other cryptocurrencies have shot up and do not look like they will be slowing down anytime soon. Dimon has stated that he will no longer comment on the currency, and hopefully the rest of the market follows suit.