Bitcoin traded around $11,242.61 during Tuesday Asia morning trade, according to industry site CoinDesk. The digital currency is down around 16 percent this year, having fallen from a record high of more than $19,000 in December last year.
But one reason authorities have been slow to act when it comes to regulating bitcoin is due to the anticipation of the technology behind the digital currency, according to Rogoff.
“They want to see the technology develop,” Rogoff said, adding that the private sector has historically “invented everything” in the history of currency, from standardized coinage to paper currency.
Bitcoin is just one application of blockchain technology, a term used to refer to distributed ledger technology that allows transactions to be recorded and maintained, which has been identified as a major area of growth.
This is not the first time the economist has pointed to cryptocurrency prices falling. Before bitcoin sold off in December last year, Rogoff told CNBC last October that prices of the digital currency would “collapse” amid attempts by governments to regulate the space.
— CNBC’s Evelyn Cheng contributed to this report.