Cryptocurrencies, Geopolitics, and the Future of the International Monetary System

Eric Monnet ()
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Eric Monnet: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris

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Abstract: The new US strategy consists of promoting dollar-backed stablecoins to reinforce the international dominance of the dollar. By directly linking digital payment instruments to the holding of reserve assets, stablecoins could increase global demand for US public debt and result in the reserves held by central banks coming from private issuers. Such a development would represent a major rupture for the international monetary system, bringing payments closer to a currency-board logic and reducing the monetary autonomy of many countries. However, the article emphasizes the limits of this strategy and identifies three possible courses: dollar-based stablecoin hegemony, a multipolar system based on several stablecoin reference currencies, or the development of centralized payment and settlement infrastructures within and between nations. However, it is also probable that the digital transformation of payments will do little to change existing monetary relationships. JEL classification: E42, E58, F33, G28.

Date: 2026-01
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Published in Revue d'économie financière, 2026, 161

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