Kenneth Rogoff: Cryptocurrencies Have Value, Their Growing Popularity in the Gray Market May Undermine the Dollar's Status

According to ChainCatcher, Bloomberg reports that Kenneth Rogoff, former chief economist of the International Monetary Fund (IMF) and member of the Federal Reserve Board, stated in an interview that geopolitical tensions and the growing influence of cryptocurrencies are undermining the global status of the dollar.

Kenneth Rogoff believes that critics who consider cryptocurrencies to be mere scams and worthless are completely wrong. "The view that there is no 'fundamental value proposition' in cryptocurrency transactions is incorrect." One of the main markets for the dollar is the global underground economy, where the preferred payment method for such transactions used to be the dollar, but now the preferred method is cryptocurrency. Cryptocurrencies offer a recognized medium of exchange, which is a value proposition. Even if governments strictly regulate cryptocurrencies, they will still face significant challenges in controlling the underground economy. Therefore, Kenneth Rogoff believes that "cryptocurrencies have value." Authorities will face great difficulties in tracking cryptocurrency transactions in the gray market, which means cryptocurrencies are "not worthless."