Kenneth Rogoff, an esteemed economist, has written extensively about the challenges posed by cryptocurrencies to global economic hegemony. In his 2022 interview with Bloomberg, Rogoff emphasized that while the U.S. dollar remains the most dominant global currency, its influence is gradually diminishing. Rogoff, previously serving as the chief economist at the International Monetary Fund (IMF) and as the head of the Federal Reserve Board, hasSGapped skepticism over the dominance of the dollar in the global economy. According to Rogoff, the rise of cryptocurrency poses a significant threat to the U.S. preference for the dollar as the most valuable international reserve.
Rogoff explained that as more countries adopt cryptocurrencies, they increasingly perform as prime transactions channels, particularly in the underground economy, where cash, such as U.S. dollars, has been widely used. He highlighted that the largest portion of the underground economy, around 20%, is composed of tax evaders and criminals conducting transactions for financial evasion. Rogoff estimates this portion of the global economy could be worth $20 to $25 trillion, depending on the value of the dollar. This trend has been observed for decades, but its impact is becoming more significant with the growing prevalence of cryptocurrencies.
Rogoff’ arguments are compelling and widely accepted by economists and financial experts. He argues that while cryptocurrencies have had an impact on financial innovation andmarketation, their presence in the global economy triggers systemic effects. For instance, selling U.S. dollars in exchange for cryptocurrencies can lead to interest rate hikes in the U.S., as seen in 2021 when Castillo結cthe Fed increased its borrowing rate to About.67 Relative to the New York interbank rate. These actions make everything more expensive, including housing prices and other financial instruments.
Critics, however, point to categories that benefit from the decline in the dollar’s valuation, such asMarc?科特(M静静?) from西医 Paul contend that the strict preference for the dollar in institutionalized economies has꺃ledrug?id=313by authorities. For example, critics argue that merely holding a Bitcoin is seen as a status symbol, which contributes to币 dominates global markets. This centric approach could undermine the dollar’s dominance.
Rogoff, on the other hand, is Reflexively responding to these charges, emphasizing that crypto has value and that its adoption in the global economy poses a fundamental challenge. While criticsAlternatively, viewing cryptocurrencies primarily as options, Rogoff maintains that their value lies not in their ability to replace the dollar but in their intuitive acceptance as a medium of exchange in exchange. He argues that their use in the underground economy, which lacks the stringent regulatory frameworks inherent in central banks’ criminal activities, poses a real threat to the dollar’s legal dominance.
Moreover, Rogoff questions the assertion by critics that cryptocurrencies are worth nothing, stating that “there is a ‘fundamental value proposition’ in transactions with crypto, which is just wrong.” He explains that he identifies at least theories of yuan adaptability and practicality in particular, supports arguments by Murrayelsen, Hejkman, and Adams, and underscores the differences in approaches under institutional versus regulatory jurisdictions.
Rogoff also observes that while some critics bash cryptocurrencies as chaotic scams with no real value, empirically, they persist in global economies. Canada’s crypto adoption is a bxample, analogous to how a neighboring nation’s currency出了问题 may cause its citizens and businesses to lose confidence and gain advocacy. This scenario highlights the real-world consequences of adopting cryptographically-based alternatives for the dollar.
In conclusion, Rogoff’s work demonstrates that the rise of cryptocurrencies is an existential threat to global financial institutions. This shift has the potential to increase borrowing costs, disrupt monetary policy, and undermine institutional efficiency, all of which should influence ownership strategies in the future. As the dollar’s legal dominance fades, not only will its value relative to the dollar be eroded but also the value of cryptocurrencies may breach what pertains to their role in the global economy.
