THE DAWN OF THE NEW INTERNATIONAL MONETARY ARCHITECTURE

Abstract

The international monetary order has always been closely associated with the dominant economic power of the time. Leading nations have issued the global reserve currency, which has gained widespread acceptance based on expectations of its future use in international transactions. The monetary system is often perceived as the most enduring component of the economic structure, while shifts in the status of the global currency depend on changes in the economic and geopolitical power of its issuer. Today, two major forces constitute key factors that may reshape the post-World War II monetary infrastructure. The first is technological innovation, which is unlocking new possibilities in money and payment systems. The second is geopolitical tension, which is increasing the attractiveness of alternative currencies and monetary arrangements. In this context, various proposals have emerged regarding the future design of the international monetary system, ranging from return to commodity-backed currencies such as gold to the creation of digital currency networks driven by technological advancement. Each proposal has its advantages and disadvantages.