American economist Kenneth Rogoff signals to the India Times that interest in the US dollar is coming to an end. He explained that while no alternative competes against the USD, other currencies are slowly filling in the void. The top currencies that could take shape and challenge the greenback in the years to come are the euro and the Chinese yuan.

Rogoff said that many countries are distancing themselves from the US dollar as the White House is weaponizing the currency. The greenback is now seen as a natural threat to global economies as Trump is using it for trade wars, tariffs, and sanctions. Even allies in Europe and other Western countries are cutting back on the US dollar’s influence.

Also Read: CBDCs Crumble as Privacy Fears Push Stablecoins to Victory, CZ Says

The World Is Growing Disinterested in the US Dollar

The economist, who also chairs the International Economics at Harvard University, said that people are displaying interest in other currencies. He stressed that economies are drawn towards the euro and Chinese yuan as they benefit trade and policies. Using the new currencies for trade and cross-border transactions also reduces dependency on the US dollar.

“There is a distance from the dollar. I do not mean that the dollar will disappear or that someone else will take its place. But people are now showing interest in other currencies,” said Rogoff. “Especially the euro and gradually towards the Chinese yuan (Renminbi) and cryptocurrency as well,” he said.

Also Read: SWIFT’s CIO Applauds GBBC’s Collaboration with Ripple, HBAR & ADA

Rogoff added that countries can cut back on their dollar reserves without necessarily shifting to other currencies. Instead, they may hold back on accumulating reserves and scale down investments in the US Treasury bills. He stressed that countries can take this step even without converting to alternative currencies. The move would make the US dollar appear less attractive in the markets. This would push interest rates higher, making it harder for the US to manage its debt burden.