US dollar decline is a fact of the present with an alarming speed, and many economists are even concerned about the future of America from a financial perspective. The greenback has for decades practically dominated world markets, but this era may be dying out sooner than one could have imagined. Harvard Economist Kenneth Rogoff has been monitoring this trend for years and at the time of this writing believes that what we are observing is a historic shift that is going to change the nature of international finance for generations.

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US Dollar Decline, De-Dollarization, And Crypto’s Global Rise

The Dollar’s Fading Glory

As told by Rogoff’s extensive research, the US dollar decline started years ago. He tracks the currency’s travels, as well as its tenuous future, in his new book “Our Dollar, Your Problem.”

Rogoff stated:

“My thesis is that the US dollar is about to get knocked down a couple pegs. It will still be first in global finance, because nothing is poised to fully replace it. The dollar just won’t be as unique as it once was.”

The economist believes the trend began even earlier than most people suspect, with the dollar perhaps hitting its peak influence somewhere in the year 2015 before what he calls “a gentle decline” that has picked up pace due to various global factors.

America’s Financial Arrogance

After the United States has demonstrated how currency power could be utilized for weaponization in international spats, serious de-dollarization impetus has received. The roots of the said crisis could be pushed back to Nixon’s 1971 move to abandon the gold standard, which proved to be rather shocking at the time.

Rogoff explained:

“We’ve been able to use economic sanctions in place of military intervention. It saves us lives; it saves us money. But dollar dominance also gives us access to financial data that no other country has.”

This financial leverage has basically driven contending powers to look for dollar substitutes, Rogoff observes there’s “quite an appetite, particularly in Asia, to reduce the dollar’s grip”.

Real Impact On American Life

The US dollar decline affects everyday Americans in ways many don’t really recognize or understand. Lower interest rates and extraordinary borrowing capacity during times of crisis are direct benefits of dollar dominance that we often take for granted.

Rogoff said:

“For one thing, we’re all paying lower interest rates. It’s not a huge amount. You don’t like paying 6 percent on your mortgage, but you’d dislike it even more if you were paying 7 percent. And for the national government, which owes $36 trillion, every additional 1 percent is $360 billion.”

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Trump’s Accelerating Effect

Recent political developments and policy changes have definitely intensified US dollar decline trends. The tariff announcements in April 2025 triggered significant Treasury sell-offs, revealing just how vulnerable the market can be.

Rogoff observed:

“The dollar is starting to experience more serious health issues under Trump. Trump has been an accelerant. He has been a catalyst. Parts of the world were already moving away from the dollar. Now they’re moving much faster.”

Crypto Rise As Alternative

Cryptocurrency adoption is an interesting alternative to traditional fiat systems, during the ongoing US dollar decline. Digital assets are more and more taking on the form of hedge against the rising inflation outside the scope of national management, and they are experiencing the advantage of growing mistrust towards established currency worldwide.

The Multi-Currency Future

De-dollarization does not by itself imply an immediate collapse of the dollar but simply the shift into a more balanced world currency system. The crypto rise is only a part of this changing financial world which develops day by day.

Rogoff characterized the dollar’s current state:

“The dollar is in late middle-age, but still in good health.”

This gradual shift toward multiple reserve currencies probably means Americans will eventually face higher interest rates, reduced borrowing power, and somewhat diminished global influence as the US dollar decline progresses over the next few years.

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