Renowned American economist Kenneth Rogoff has published a book, “Our Dollar, Your Problem,” analyzing the role of the dollar in the global financial system and how cryptocurrency affects its dominance. In an interview with Bloomberg, Rogoff warned that the dollar’s influence is waning, citing the rise of the yuan and the growing use of cryptocurrency in underground economies.
Rogoff believes the dollar’s decline began a decade ago, as the yuan broke free from US constraints and the euro gained prominence. The author also notes that cryptocurrency has significant value, particularly in the underground economy where governments have limited control. According to Rogoff, this underground economy accounts for 20% of global GDP, representing a $20 trillion to $25 trillion market.
While many experts, including billionaire Warren Buffett, view cryptocurrency as a scam, Rogoff disagrees, arguing that it provides a means of exchange with value. By acknowledging the significance of this underground economy and the value proposition offered by cryptocurrencies, Rogoff suggests that governments are facing an increasing challenge in controlling the global financial system.
As the dollar’s influence continues to decline, Rogoff warns that its dominance is no longer assured. Cryptocurrency has already weakened the dollar’s grip on the underground economy, and it remains to be seen how regulators will respond to this shift.
Source: https://www.binance.com/en/square/post/24702966333377