American economist Kenneth Rogoff believes that the rise of cryptocurrency poses a threat to the dominance of the US dollar.
Rogoff previously served as chief economist at the International Monetary Fund (IMF) and at the Federal Reserve. He is a published author and an economics professor at Harvard University. In an interview with Bloomberg, Rogoff stated that although the US dollar remains the world's dominant currency, its influence is declining. "I see it as just a mistake." Rogoff explained that cryptocurrencies provide an acceptable means of exchange, which is a valuable proposition. He stated that even if the government regulates major cryptocurrencies, it will still face significant challenges in controlling the underground economy, where it has much less leverage. Therefore, Rogoff insists that "cryptocurrency has value." He added that the difficulty authorities will face in tracking cryptocurrency transactions in the gray market is significant, which means that cryptocurrency is "not worthless," because "there is a lot at stake here." However, he clarified: "Crypto cannot replace the dollar. But that is in the legal economy where the government has a lot of influence. But in the underground economy, by definition, it has much less leverage." The latest Alpha Market Report