Probe - Accounting, Auditing and Taxation

A multidimensional perspective on the impact of digital currency on the transformation of the international monetary system within the theoretical framework of financial development

Weijia Li

The Pennsylvania State University, State College

DOI: https://doi.org/10.59429/paat.v7i2.10286

Keywords: Digital currency; Financial development theory; International monetary system; Institutional restructuring

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Abstract

From an angle of attack of financial development theory, digital currency exerts influence on the international monetary system in many aspects. In this paper, we establish an analytical framework to analyze how digital currency promotes the process of reshaping international monetary system in terms of financial intermediation, monetary sovereignty redefinition, and cross-border payment infrastructure adjustment, respectively. Our analysis shows that digital currency is not a fuel resulting from the process of technological development, but more importantly, a trigger that triggers the transformation of the international monetary system.

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References

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