Ex-IMF Chief Says Crypto Is Weakening US Dollar Power

Harvard economist Kenneth Rogoff believes cryptocurrency is slowly weakening the global influence of the US dollar. In a recent interview, he said digital currencies are gaining ground in underground markets where the dollar once dominated. Rogoff warned that this shift could impact the U.S. economy and global financial power. The US Dollar Is Losing Strength While Crypto Gains Ground Kenneth Rogoff has held key roles in the global finance sector. He previously served as the chief economist at the International Monetary Fund (IMF) and a Federal Reserve board member. Based on his years of experience, he believes the US dollar is no longer as dominant as it used to be. Rogoff said that other major currencies, such as China’s renminbi and the European euro, have been gaining more power in the global financial system for years. He noted that crypto is now speeding up this shift, with Bitcoin now considered a safe haven. This is especially true during market uncertainty and macroeconomic pressures. The former IMF chief says the dollar’s decline is partly due to crypto use in the underground economy. This includes unreported and illegal activities like tax evasion and unregistered deals. He noted that many in this $20–25 trillion market once used cash, but now prefer cryptocurrency. Rogoff Says Cryptocurrencies Threaten U.S. Financial Power Rogoff warned that the dollar’s loss of ground in the gray market could have real-world consequences. If the dollar becomes less important globally, interest rates in the U.S. could rise. This would make loans, mortgages, and Treasury bonds more expensive. The United States has long benefited from having the world’s top reserve currency. This unique position allows the U.S. to borrow money at lower interest rates. Rogoff emphasized that if that position weakens, everything will be more expensive for Americans. There is also a national security risk concern. The U.S. government tracks global financial flows to spot threats and enforce sanctions. However, when crypto is used in these transactions, it becomes harder for the government to trace the money and respond to potential dangers. Rogoff Agrees Crypto Has Real Value While many critics argue that cryptocurrencies are worthless or only useful for illegal activity , Kenneth Rogoff strongly disagrees with this view. He said that digital assets do have real value and act as a medium of exchange. Even if governments introduce stricter rules for crypto, it will likely continue to grow in the underground economy. He clarified that crypto cannot replace the dollar in the legal economy , where government oversight is strong. Nevertheless, crypto is already becoming a popular choice in the underground economy, where rules are often ignored or avoided. The post Ex-IMF Chief Says Crypto Is Weakening US Dollar Power appeared first on TheCoinrise.com .

Source: The Coin Rise