The Dollar’s Dominance Is Slipping—And America’s Arrogance Is to Blame

Economists warn that the U.S. dollar’s global supremacy is under threat—not from external forces, but from Washington’s own hubris. As BRICS nations quietly build alternatives and Bitcoin becomes a reserve asset for rogue states, the greenback’s ’exorbitant privilege’ looks increasingly fragile.

Here’s the irony: the weaponization of dollar-based finance is accelerating its own obsolescence. Sanctions? They just fuel decentralized alternatives. Trade deficits? More like a slow-motion surrender of monetary sovereignty.

Meanwhile, Treasury officials still act like the world has no choice but to use dollars—even as gold reserves migrate East and Tether’s market cap hits $100B. The real ’petrodollar’ these days might just be Bitcoin.

Wake-up call: when even Wall Street banks are hoarding crypto as a hedge against dollar debasement, it’s time to admit the emperor has no clothes. But sure—keep printing those trillions. What could go wrong?

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:

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:

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:

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:

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:

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.